AUD/USD Daily Forecast – Test Of Resistance At 0.7440

AUD/USD Video 04.12.20.

Australian Dollar Tries To Continue Its Upside Move

AUD/USD managed to settle above the resistance at 0.7415 and is trying to settle above the next resistance level at 0.7440 while the U.S. dollar continues to lose ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle below the nearest support level at 90.60. RSI for the U.S. Dollar Index is in the oversold territory so chances for a rebound are increasing.

However, it should be noted that the American currency may remain under severe pressure on the foreign exchange market in the upcoming trading sessions as traders bet that U.S. will soon introduce a new stimulus package to support the economy.

Yesterday, U.S. reported that Initial Jobless Claims declined from 787,000 to 712,000 while Continuing Jobless Claims decreased from 6.09 million to 5.52 million.

Today, traders will have a chance to evaluate additional employment data from the U.S. The Non Farm Payrolls report is expected to show that 469,000 jobs were created in November. Unemployment Rate is expected to decrease from 6.9% to 6.8%.

In Australia, Retail Sales increased by 1.4% month-over-month in October while analysts expected growth of 1.6%. Most likely, Australia’s Retail Sales will continue to grow in the remaining months of 2020 as the country managed to contain the virus.

Technical Analysis

AUD/USD is currently testing the nearest resistance level at 0.7440. RSI remains in the moderate territory so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

In case AUD/USD settles above the resistance at 0.7440, it will head towards the next resistance level at 0.7465. A move above 0.7465 will push AUD/USD towards the resistance at 0.7485.

On the support side, the nearest support level for AUD/USD is located at 0.7415. AUD/USD needs to stay above this level, which is located at September highs, in order to develop additional upside momentum.

If AUD/USD declines below 0.7415, it will gain downside momentum and quickly get to the test of the next support at 0.7400. In case AUD/USD moves below 0.7400, it will move towards the support at 0.7380.

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