AUD/USD Daily Forecast – Resistance At 0.7325 In Sight

AUD/USD Video 18.11.20.

Australian Dollar Rebounds Against U.S. Dollar

AUD/USD has recently made an attempt to settle below 0.7290 but received strong support at 0.7275 and rebounded back above 0.7300 while the U.S. dollar continued to lose ground against a broad basket of currencies.

The U.S. Dollar Index remains under serious pressure and is moving towards the support level at 92.10. A successful test of this level will open the way to the next support at 91.75 which will be bullish for AUD/USD.

Yesterday, U.S. reported that Retail Sales increased by 0.3% month-over-month in October while analysts expected that they would grow by 0.5%. The slowdown in U.S. Retail Sales growth indicated that the recent coronavirus surge has put some pressure on U.S. consumers. Meanwhile, U.S. Industrial Production increased by 1.1% while Manufacturing Production grew by 1%.

Today, foreign exchange market traders had a chance to take a look at the latest reading of Westpac Leading Index which increased by 0.1% in October after growing by 0.2% in September. The economic situation in Australia continued to get better thanks to the country’s success in dealing with the coronavirus pandemic.

Technical Analysis

AUD/USD is currently trying to settle above 0.7300 after an unsuccessful attempt to get below the support level at 0.7275. If AUD/USD stays above 0.7290, it will move towards the resistance level at 0.7325.

A successful test of the resistance at 0.7325 will push AUD/USD towards the test of the next resistance level at 0.7340. This resistance level has already been tested several times in November and proved its strength.

Most likely, AUD/USD will be able to gain additional upside momentum in case it manages to settle above the resistance at 0.7340. In this case, AUD/USD will quickly get to the test of the next resistance level at 0.7360.

On the support side, the nearest support level for AUD/USD is located at 0.7290. A move below this level will push AUD/USD towards the support at 0.7275. If AUD/USD declines below the support at 0.7275, it will gain downside momentum and move towards the next support level at 0.7240.

For a look at all of today’s economic events, check out our economic calendar.