AUD/USD Daily Forecast – Resistance At 0.7820 In Sight

AUD/USD Video 19.02.21.

Australian Dollar Gains Ground Ahead Of The Weekend

AUD/USD is currently trying to get to the test of the resistance level at 0.7820 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to settle below the support at 90.50 and is moving towards the next support level at 90.30. If the U.S. Dollar Index settles below the support at 90.30, it will head towards the next support at the 90 level which will be bullish for AUD/USD.

Today, Australia reported that Manufacturing PMI declined from 57.2 in January to 56.6 in February compared to analyst consensus of 57.3. Meanwhile, Services PMI decreased from 55.6 to 54.1. Retail Sales grew by 0.6% month-over-month in January while analysts expected that they would grow by 2%. The reports were weaker than expected but they did not put pressure on AUD/USD as the U.S. dollar remained under broad pressure.

Foreign exchange market traders will also have a chance to take a look at U.S. PMI numbers today. U.S. Manufacturing PMI is projected to decline from 59.2 in January to 58.5 in February while U.S. Services PMI is expected to decrease from 58.3 to 57.6.

Technical Analysis

AUD/USD managed to get above the resistance level at 0.7800 and is moving towards the next resistance at the yearly highs at 0.7820. In case AUD/USD settles above the resistance at 0.7820, it will move towards the next resistance at 0.7840.

RSI remains in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge. If AUD/USD gets above the resistance at 0.7840, it will head towards the next resistance at 0.7875.

On the support side, a move below 0.7800 will push AUD/USD towards the next support at 0.7780. If AUD/USD declines below the support at 0.7780, it will head towards the next support which is located at 0.7760. A successful test of the support at 0.7760 will open the way to the test of the next support level which is located at 0.7740.

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