AUD/USD Daily Forecast – Support At 0.7740 In Sight

AUD/USD Video 08.01.21.

Australian Dollar Is Under Pressure

AUD/USD is trying to get to the test of the support at 0.7740 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index gained some upside momentum and is currently testing the nearest resistance level at 90. If this test is successful, the U.S. Dollar Index will head towards the resistance at the 20 EMA at 90.15 which will be bearish for AUD/USD.

Today, foreign exchange market traders will have a chance to take a look at U.S. Non Farm Payrolls and Unemployment Rate reports for December. The Non Farm Payrolls report is projected to show that the economy added 71,000 jobs in December but it remains to be seen whether the actual report will be positive given the serious pressure from the second wave of the virus. The Unemployment Rate is expected to increase from 6.7% to 6.8%.

Interestingly, stimulus expectations and recent unrest in Washington did not put any pressure on the American currency which continues to rebound from recent lows. However, the situation may change quickly as the political situation will likely get more calm when Joe Biden enters office.

Technical Analysis

AUD/USD managed to get below the support at 0.7760 and is trying to get to the test of the next support level at 0.7740. If AUD/USD gets below the support at 0.7740, it will move towards the support at 0.7700.

In case AUD/USD declines below the support level at 0.7700, it will head towards the next support at 0.7675.

On the upside, AUD/USD needs to stay above 0.7760 to have a chance to develop upside momentum in the near term. RSI has declined from recent highs and moved back into the moderate territory so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

The next resistance level for AUD/USD is located at 0.7800. If AUD/USD manages to settle above this level, it will head towards the next resistance which is located at the recent highs at 0.7820. A successful test of this level will push AUD/USD towards the resistance at 0.7840.

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