AUD/USD Daily Forecast – Support At 0.7275 Remains Strong

AUD/USD Video 20.11.20.

U.S. Dollar Is Mostly Flat Against Australian Dollar Ahead Of The Weekend

AUD/USD continues its attempts to settle below the nearest support area at 0.7275 – 0.7290 while the U.S. dollar is mostly flat against a broad basket of currencies on the foreign exchange market.

The U.S. Dollar Index has recently made an attempt to get to the test of the nearest support level at 92.10 but failed to gain sufficient downside momentum and rebounded closer to 92.30. The nearest resistance level for the U.S. Dollar Index is located at 92.50. If the U.S. Dollar Index manages to get back above this resistance level, AUD/USD will find itself under additional pressure.

Today, Australia reported that Retail Sales increased by 1.6% month-over-month in October. Analysts expected that Retail Sales would grow by just 0.3%. The Retail Sales growth data for September was revised from -1.5% to -1.1%.

Interestingly, South Australia state will soon end its strict lockdown after officials found that a man lied about how he got infected. Initially, the man stated that he ordered a pizza at a pizza bar but officials found that he worked several shifts there.

Australian health officials feared that they were dealing with a new, highly contagious strain of coronavirus, so they implemented a strict lockdown which will be lifted after the man’s lie was uncovered.

Technical Analysis

AUD/USD is curently trying to settle below the support area at 0.7275 – 0.7290. It has already made several attempts to move below the support at 0.7275 but this support level remained strong.

In case AUD/USD manages to settle below this level, it will gain downside momentum and head towards the next support level at the 20 EMA at 0.7240. A successful test of this level will open the way to the test of the next support level at 0.7210.

On the upside, AUD/USD needs to get back above 0.7290 to have a chance to develop upside momentum and get to the test of the nearest resistance level at 0.7325.

If AUD/USD manages to get above the resistance at 0.7325, it will move towards the next resistance at the recent highs at 0.7340.

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