AUD/USD Daily Forecast – Resistance At 0.7675 In Sight

AUD/USD Video 30.12.20.

U.S. Dollar Remains Under Pressure Against Australian Dollar

AUD/USD managed to get above the resistance at 0.7635 and is moving towards the next resistance level at 0.7675 while the U.S. dollar is under serious pressure against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle below the support at 89.75 but failed to develop sufficient downside momentum. If the U.S. Dollar Index manages to settle below this level, it will continue its downside move and head towards the support at 89.40 which will be bullish for AUD/USD.

Today, foreign exchange market traders will have a chance to take a look at several economic reports from the U.S. Analysts expect that Pending Home Sales were flat month-over-month in November after declining by 1.1% in October.

Chicago PMI is expected to decrease from 58.2 in November to 57 in December due to the negative impact of the second wave of the virus. Meanwhile, Wholesale Investories are projected to grow by 0.5% month-over-month in November.

It remains to be seen whether these economic reports will have any serious impact on AUD/USD trading dynamics as traders remain focused on the U.S. stimulus story.

Technical Analysis

AUD/USD gained upside momentum and managed to get above the resistance at 0.7635. RSI entered into the overbought territory but remained below December highs. At this point, there is still plenty of room to gain momentum but the risks of a pullback are slowly increasing. The current situation in AUD/USD is similar to what is happening in EUR/USD.

If AUD/USD manages to settle above the resistance at 0.7635, it will get to the test of the next resistance level at 0.7675. A successful test of the resistance at 0.7675 will push AUD/USD towards the next resistance level at 0.7700.

On the support side, a move below 0.7635 will open the way to the test of the support level at 0.7600. If AUD/USD declines below the support at 0.7600, it will head towards the next support at 0.7575. In case AUD/USD gets below this level, it will move towards the support at the 20 EMA at 0.7550.

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