AUD/USD Daily Forecast – Resistance At 0.7800 Remains A Major Obstacle On The Way Up

AUD/USD Video 29.04.21.

Australian Dollar Is Mostly Flat Against U.S. Dollar

AUD/USD has recently made another attempt to settle above the resistance at 0.7800 but failed to develop sufficient upside momentum and pulled back while the U.S. dollar moved higher against a broad basket of currencies.

Yesterday, the U.S. Dollar Index found itself under significant pressure after the Fed left the interest rate unchanged and stated that it was not the time to think about reducing asset purchases. Today, the U.S. Dollar Index managed to find support near 90.50 and is trying to get to the test of the resistance at 90.70. In case the U.S. Dollar Index moves above this level, it will head towards the resistance at 91 which will be bearish for AUD/USD.

Today, foreign exchange market traders will focus on the economic data from the U.S. Analysts expect that Initial Jobless Claims report will indicate that 549,000 Americans filed for unemployment benefits in a week.

Continuing Jobless Claims are projected to decline from 3.67 million to 3.61 million. GDP Growth Rate report is expected to show that GDP grew by 6.1% in the first quarter on a quarter-over-quarter basis.

Technical Analysis

AUD/USD has once again faced significant resistance at 0.7800 and pulled back. The nearest support level for AUD/USD is located at 0.7775. If AUD/USD manages to decline below this level, it will move towards the next support at 0.7750.

A successful test of the support at 0.7750 will push AUD/USD towards the support at the 20 EMA at 0.7735. In case AUD/USD declines below the 20 EMA at 0.7735, it will move towards the next support level which is located at 0.7720.

On the upside, AUD/USD needs to settle above the major resistance at 0.7800 to continue its upside move. The next resistance is located at 0.7820. If AUD/USD gets above this level, it will head towards the resistance at 0.7850. A move above the resistance at 0.7850 will open the way to the test of the next resistance at 0.7880.

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