AUD/USD Daily Forecast – Resistance At 0.7750 In Sight

AUD/USD Video 23.04.21.

Australian Dollar Moves Higher Against U.S. Dollar

AUD/USD is currently trying to get to the test of the resistance at 0.7750 while the U.S. dollar is under pressure against a broad basket of currencies.

The U.S. Dollar Index is testing the support level at 91. The U.S. Dollar Index has already made several attempts to settle below this level in recent trading sessions but failed to develop sufficient downside momentum. In case the U.S. Dollar Index gets below 91, it will head towards the support at 90.70 which will be bullish for AUD/USD.

Australia has recently provided flash PMI reports for April. Services PMI increased from 55.5 in March to 58.6 in April compared to analyst forecast of 55. Manufacturing PMI improved from 56.8 to 59.6 compared to analyst forecast of 56. Both reports were much stronger than expected and highlighted the robust rebound of the Australian economy.

Today, foreign exchange market traders will also have a chance to take a look at flash PMI data from the U.S. Analysts expect that Manufacturing PMI increased from 59.1 in March to 60.5 in April while Services PMI improved from 60.4 to 61.9. New Home Sales are projected to grow by 12% month-over-month in March after declining by 18.2% in February.

Technical Analysis

AUD/USD received strong support near the 20 EMA at 0.7700 and rebounded back above 0.7720. Currently, AUD/USD is trying to get to the test of the resistance at 0.7750.

In case AUD/USD settles above this level, it will head towards the next resistance at 0.7775. A successful test of the resistance at 0.7775 will push AUD/USD towards the next resistance at 0.7800. If AUD/USD gets above 0.7800, it will move towards the resistance at 0.7820.

On the support side, a move below 0.7720 will open the way to the test of the major support level at the 20 EMA at 0.7700. The 50 EMA is near this level, and AUD/USD will likely need additional downside catalysts to settle below the 20 EMA and the 50 EMA.

If AUD/USD settles below the 50 EMA, it will move towards the next support level which is located at 0.7665.

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