AUD/USD Daily Forecast – Support At 0.7600 Remains Strong

AUD/USD Video 31.03.21.

Traders Wait For U.S. Job Market Data

AUD/USD is testing the support at 0.7600 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the resistance at 93.40 but this attempt was not successful, and the U.S. Dollar Index returned to the support level at 93.20. Currently, it is trying to settle below this support level. In case this attempt is successful, the U.S. Dollar Index will move towards the next support at 93 which will be bullish for AUD/USD.

Today, Australia reported that Building Permits grew by 21.6% month-over-month in February after declining by 19.4% in January. Analysts expected that Building Permits will increase by 5%.  The report indicated that Australia’s housing market remained strong after a quick pullback in January.

Foreign exchange market traders will soon have a chance to take a look at the latest economic data from the U.S. ADP Employment Change report is projected to show that private businesses added 550,000 jobs in March. Pending Home Sales are projected to decline by 2.6% month-over-month in February after falling by 2.8% in January.

Technical Analysis

AUD/USD has recently made another attempt to settle below the nearest support at 0.7600 but failed to develop sufficient downside momentum. The nearest resistance level for AUD/USD is located at 0.7635.

If AUD/USD manages to settle above this level, it will head towards the next resistance at 0.7665. A successful test of this resistance level will open the way to the test of the resistance at the 20 EMA at 0.7680.

On the support side, a move below the support at 0.7600 will push AUD/USD towards the next support which is located near the lows of the previous downside move at 0.7575.

If AUD/USD declines below the support at 0.7575, it will head towards the next support level at 0.7535. A move below the support at 0.7535 will open the way to the test of the support at 0.7490.

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