AUD/USD Daily Forecast – Support At 0.7700 Stays Strong

AUD/USD Video 21.04.21.

Australian Dollar Is Mostly Flat Against U.S. Dollar

AUD/USD has recently made an attempt to settle below the support at 0.7700 while the U.S. dollar gained ground against a broad basket of currencies.

The U.S. Dollar Index is testing the resistance level at 91.30. In case this test is successful, the U.S. Dollar Index will head towards the resistance at 91.50 which will be bearish for AUD/USD.

Australia has recently reported that Retail Sales increased by 1.4% month-over-month in March after falling by 0.8% in February. Analysts expected that Retail Sales would grow by 1%.

Foreign exchange market traders will also keep an eye on the developments in commodity markets. Commodity traders are worried about the situation with coronavirus in India, which recorded more than 294,000 new COVID-19 cases on Tuesday.

At the same time, commodities are supported by unprecedented stimulus and expectations of higher inflation. In case commodity markets shrug off virus worries and move higher, commodity-related currencies like Australian dollar will get more support.

Technical Analysis

AUD/USD has recently tested the support level at 0.7700 but failed to develop sufficient downside momentum and moved closer to 0.7720. Currently, AUD/USD is trying to settle above this level.

In case this attempt is successful, AUD/USD will head towards the resistance at 0.7750. RSI is in the moderate territory, and there is plenty of room to gain upside momentum in case the right catalysts emerge.

If AUD/USD settles above the resistance at 0.7750, it will head towards the next resistance level at 0.7775. A successful test of this level will push AUD/USD towards the resistance at 0.7800.

On the support side, AUD/USD needs to settle back below 0.7720 to have a chance to get to another test of the support at 0.7700. If AUD/USD manages to settle below the support at 0.7700, it will head towards the support which is located at the 50 EMA at 0.7690. A move below the 50 EMA will open the way to the test of the support at 0.7665.

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