AUD/USD Daily Forecast – Test Of Resistance At 0.7415

AUD/USD Video 03.12.20.

Australian Dollar Gained Strong Upside Momentum

AUD/USD is currently trying to settle above the resistance level at 0.7415 while the U.S. dollar continues to lose ground against a broad basket of currencies.

The U.S. Dollar Index remains under significant pressure and is trying to settle below the 91 level. If this attempt is successful, the U.S. Dollar Index will head towards the next support at 90.60 which will provide additional support to AUD/USD.

Yesterday, U.S. ADP Employment Change report indicated that private businesses hired 307,000 workers in November. The report was worse than analysts expected and put additional pressure on the U.S. dollar on the foreign exchange market.

Today, traders will focus on U.S. Initial Jobless Claims and Continuing Jobless Claims reports. Initial Jobless Claims are expected to decrease from 778,000 to 775,000 while Continuing Jobless Claims are projected to decline from 6.1 million to 5.9 million.

While the U.S. economy has started to feel some pressure from the second wave of coronavirus, Australia’s economy benefited from the country’s successful efforts in containing the disease. The recent Services PMI report indicated that Services PMI increased from 52.7 in October to 55.3 in November.

Technical Analysis

AUD/USD managed to get above the resistance level at 0.7415 and continues its upside move. The next resistance level for AUD/USD is located at 0.7440.

If AUD/USD settles above this level, it will head towards the next resistance at 0.7465. A successful test of the resistance at 0.7465 will open the way to the next resistance at 0.7485.

On the support side, the previous resistance at 0.7415 will likely serve as the first support level for AUD/USD. If AUD/USD declines below this level, it will head towards the next support at 0.7400. A move below the support at 0.7400 will open the way to the test of the support at 0.7380.

From a big picture point of view, AUD/USD has just managed to get above September highs and is trying to establish an upside trend after several months of range-bound trading between 0.7000 and 0.7400.

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