AUD/USD Daily Forecast – Support At 0.7275 Stays Strong

AUD/USD Video 10.11.20.

Australian Dollar Tries to Continue Its Upside Move

AUD/USD has managed to stay above the nearest support level at 0.7275 and is trying to get back above 0.7300 while the U.S. dollar is losing ground against a broad basket of currencies.

Yesterday, the U.S. Dollar Index failed to settle above the resistance at 93 and pulled back. Currently, it is located near 92.75. In case the U.S. Dollar Index moves towards the resistance at 93, AUD/USD will likely find itself under some pressure.

Today, Australia reported that Business Confidence increased from -4 in September to 5 in October. The business mood improved as Australia was mostly successful in containing the spread of the virus.

Tomorrow, Australia will provide Consumer Confidence Index report which is expected to show that Consumer Confidence increased from 105 in October to 108 in November.

AUD/USD gained plenty of ground in recent trading sessions but it will likely need additional catalysts to continue its upside move. The fate of the new round of U.S. economic stimulus is uncertain which provides some support to the American currency.

In addition, the number of new coronavirus cases in the world remains at high levels, which could potentially provide more support to safe haven assets like the U.S. dollar as mass vaccination is still months away.

Technical Analysis

AUD/USD received material support at 0.7275 and is trying to gain more upside momentum. In case this attempt is successful, it will get to the test of the nearest resistance level at 0.7310.

If AUD/USD manages to settle above 0.7310, it will gain upside momentum and head towards the resistance at 0.7325. A move above 0.7325 will push AUD/USD towards the next resistance at the recent highs at 0.7340.

On the support side, the nearest support level for AUD/USD is located at 0.7275. This support level has already been tested several times and proved its strength.

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

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