AUD/USD Daily Forecast – Support At 0.7325 Stays Strong

AUD/USD Video 25.11.20.

Australian Dollar Pulls Back

AUD/USD failed to settle above the resistance at 0.7360 and even tested the support at 0.7325 while the U.S. dollar continued to lose ground against a broad basket of currencies.

The American currency remains under serious pressure on the foreign exchange market, but this weakness does not provide enough support to the Australian dollar today.

The U.S. Dollar Index managed to get below the support at 92.10 and is trying to develop additional downside momentum. If this attempt is successful, the U.S. Dollar Index will move towards yearly lows at 91.75 which should provide support to AUD/USD.

Today, the U.S. will release many economic reports. Initial Jobless Claims are expected to decline to 730,000 while Continuing Jobless Claims are projected to decline to 6 million.

Meanwhile, Durable Goods Orders are expected to increase by 0.9% in October after growing by 1.9% in September. Personal Income is projected to remain unchanged, while Personal Spending is expected to grow by 0.4%. New Home Sales are expected to increase by 1.5% month-over-month in October after declining by 3.5% in September.

Most likely, traders will focus on the U.S. employment reports which will indicate whether the second wave of the virus put additional pressure on jobs.

Technical Analysis

AUD/USD made an attempt to settle above the resistance at 0.7360 but failed to develop sufficient upside momentum. However, it received strong support at 0.7325 and managed to get back above 0.7340.

If AUD/USD settles above the resistance at 0.7360, it will head towards the next resistance level at 0.7380. A move above this level will open the way to the test of the next resistance at 0.7400.

On the support side, the nearest support for AUD/USD is located at 0.7340. If AUD/USD declines below this level, it will head towards the next support at 0.7325.

A move below this support level will signal that the recent attempt to gain additional upside momentum has come an end. In this case, AUD/USD will decline towards the next support at 0.7290.

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