AUD/USD Daily Forecast – Test Of Resistance At 0.7275

AUD/USD Video 06.11.20.

Australian Dollar Moves Higher Against U.S. Dollar

AUD/USD continues to gain ground as the U.S. dollar is moving lower against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the resistance level at 92.80 and is currently testing the nearest support level at 92.50. If the U.S. Dollar Index settles below 92.50, it will gain downside momentum and head towards the next support level at 92.10 which will be bullish for AUD/USD.

Yesterday, the U.S. reported that Initial Jobless Claims decreased from 758,000 to 751,000 while Continuing Jobless Claims declined from 7.82 million to 7.29 million. Both reports were a bit worse than the analyst consensus and highlighted the slowdown of the job market recovery.

Today, AUD/USD traders will focus on the upcoming U.S. Non Farm Payrolls and Unemployment Rate reports. Analysts expect that Non Farm Payrolls increased by 600,000 in October while Unemployment Rate declined from 7.9% to 7.7%.

The recent ADP Employment Change report was significantly worse than expected, and it remains to be seen whether the U.S. Non Farm Payrolls report will be close to analyst expectations.

Yesterday’s Fed decision to leave the interest rate unchanged had little impact on markets, and traders continue to monitor the latest developments on the election front. At this point, election uncertainty did not provide any support to the American currency, which remains under pressure as traders bet on riskier assets.

Technical Analysis

AUD/USD is currently trying to settle above the nearest resistance level at 0.7275. If this attempt is successful, AUD/USD will move towards the next resistance level at 0.7310.

In case AUD/USD gets above 0.7310, it will get to the test of the resistance at 0.7325. A move above the resistance at 0.7325 will open the way to the test of the next resistance level at 0.7340.

On the support side, the previous resistance level at October highs at 0.7240 will likely serve as the first support level for AUD/USD. If AUD/USD manages to settle below this level, it will gain downside momentum and head towards the next support level at 0.7210.

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