AUD/USD Daily Forecast – Test Of Resistance At 0.7290

AUD/USD Video 16.11.20.

Australian Dollar Gains Ground Against U.S. Dollar At The Beginning Of The Week

AUD/USD is currently trying to settle above the nearest resistance level at 0.7290 as the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has managed to get below the nearest support at 92.60 and is trying to develop additional downside momentum. In case the U.S. Dollar Index settles below 92.50, it will move towards the next support level at 92.10 which will be bullish for AUD/USD.

Optimism prevails on the foreign exchange market at the beginning of the week, and traders increase their purchases of riskier currencies despite the continued problems on the coronavirus front.

Today, the U.S. will release NY Empire State Manufacturing Index for November. Analysts expect that NY Empire State Manufacturing Index will increase from 10.5 to 13.5. Any weakness in this index will signal that the rebound of the U.S. economy is slowing down, which may increase demand for safer haven assets.

At the same time, it should be noted that the current market optimism is strong so several negative catalysts will likely be required to put real pressure on riskier assets like the Australian dollar.

Technical Analysis

AUD/USD gained upside momentum and is trying to settle above the resistance at 0.7290. If this attempt is successful, AUD/USD will head towards the next material resistance level at 0.7325 although it may face some resistance at 0.7310 along the way.

If AUD/USD manages to settle above the resistance at 0.7325, it will move towards the next resistance level at the recent highs at 0.7340. A move above this level will open the way to the test of the resistance at 0.7360.

On the support side, the nearest support level for AUD/USD is located at 0.7275. In case AUD/USD declines below this level, it will move towards the next support at 0.7240.

If AUD/USD manages to settle below the support at 0.7240, it will gain downside momentum and get to the test of the next support at the 20 EMA at 0.7215.

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