AUD/USD Daily Forecast – Resistance At 0.8000 In Sight

AUD/USD Video 25.02.21.

Australian Dollar Continues To Move Higher Against U.S. Dollar

AUD/USD managed to get above the resistance at 0.7980 and is trying to get to the test of the psychologically important 0.8000 level while the U.S. dollar is under pressure against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get below the support at the 90 level and is trying to develop additional downside momentum. If this attempt is successful, the U.S. Dollar Index will get to the test of the next support at 89.75 which will be bullish for AUD/USD.

Today, foreign exchange market traders will focus on the developments in U.S. bond market and economic data from the U.S. Treasury yields are currently trying to settle above recent highs, but higher yields fail to provide support to the American currency.

U.S. stocks continue to move higher, indicating that risk appetite remains at high levels which is bullish for riskier currencies like Australian dollar. In addition, the rally in commodity markets continues, providing additional support to commodity-related currencies.

U.S. is expected to report that Initial Jobless Claims declined from 861,000 to 838,000 while Continuing Jobless Claims decreased from 4.49 million to 4.47 million. It remains to be seen whether employment reports will have a material impact on the U.S. dollar as the market remains focused on the upcoming U.S. stimulus package and rising yields.

Technical Analysis

AUD/USD gained strong upside momentum and is trying to get to the test of the resistance at 0.8000. RSI remains in the overbought territory but there is some room to gain additional momentum in case the right catalysts emerge.

If AUD/USD manages to settle above 0.8000, it will head towards the next resistance at 0.8030. A move above this level will open the way to the test of the resistance at 0.8050.

On the support side, the previous resistance at 0.7980 will likely serve as the first support level for AUD/USD. If AUD/USD declines below this level, it will head towards the support at 0.7950. A move below 0.7950 will push AUD/USD towards the support at 0.7935.

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