AUD/USD Daily Forecast – Resistance At 0.7800 Stays Strong

AUD/USD Video 27.04.21.

Australian Dollar Declines Against U.S. Dollar

AUD/USD has recently made an attempt to settle above the resistance at 0.7800 but failed to develop sufficient upside momentum and pulled back towards the support at 0.7775 while the U.S. dollar gained some ground against a broad basket of currencies.

The U.S. Dollar Index is currently testing the nearest resistance level at 91. If the U.S. Dollar Index manages to get above this level, it will gain upside momentum and head towards the next resistance at 91.30 which will be bearish for AUD/USD.

There are no important economic reports scheduled to be released in Australia today so foreign exchange market traders will remain focused on dynamics of commodity markets.

WTI oil is moving towards the $63 level as traders bet that coronavirus problems in India will remain an isolated case. Meanwhile, copper managed to get to new multi-year highs, suggesting that risk appetite continues to grow in commodity markets. If this trend persists, commodity-related currencies like Australian dollar will get more support.

Technical Analysis

AUD/USD did not manage to get above the resistance at 0.7800 and moved towards the support at 0.7775. In case AUD/USD manages to settle below this support level, it will head towards the next support at 0.7750.

A successful test of the support at 0.7750 will open the way to the test of the next support level which is located at the 20 EMA at 0.7720. If AUD/USD declines below the 20 EMA at 0.7720, it will move towards the support at the 50 EMA at 0.7705.

On the upside, AUD/USD needs to settle above the resistance at 0.7800 to continue the current upside trend. The next resistance level for AUD/USD is located at 0.7820. AUD/USD made two attempts to get above the resistance at 0.7820 in April but failed to develop sufficient upside momentum.

In case AUD/USD manages to settle above the resistance at 0.7820, it will head towards the next resistance level which is located at March highs at 0.7850.

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