AUD/USD Daily Forecast – Test Of Resistance At 0.7600

AUD/USD Video 24.12.20.

Australian Dollar Continues To Move Higher Against U.S. Dollar

AUD/USD is testing the resistance at 0.7600 while the U.S. dollar remains under pressure against a broad basket of currencies.

The U.S. Dollar Index is currently trying to get below the support at 90.15. If this attempt is successful, the U.S. Dollar Index will gain additional downside momentum and move towards the next support level at 90 which will be bullish for AUD/USD.

Yesterday, U.S. reported that Initial Jobless Claims decreased to 803,000 compared to analyst consensus of 885,000. Meanwhile, Personal Income declined by 1.1% month-over-month in November, and Personal Spending decreased by 0.4%.

These reports have once again highlighted the need for another round of stimulus. However, this stimulus may be delayed as U.S. President Trump have not signed it and asked the Congress to increase the amount in stimulus checks from $600 to $2,000 per person.

At this point, it is not clear whether the U.S. will be able to deliver the next round of stimulus next week, but foreign exchange market traders have mostly ignored this issue. Riskier assets like the Australian dollar attract strong support while the U.S. dollar remains under material pressure.

Technical Analysis

AUD/USD managed to get above the resistance at 0.7575 and is trying to settle above the next resistance level at 0.7600. If this attempt is successful, AUD/USD will gain additional upside momentum and head towards the next resistance level at 0.7635.

RSI is close to the overbought territory but there is some room to gain additional momentum in case the right catalysts emerge. If AUD/USD settles above the resistance at 0.7635, it will head towards the next resistance level near 0.7675.

On the support side, the previous resistance level at 0.7575 will likely serve as the first support level for AUD/USD. If AUD/USD declines below the support at 0.7575, it will head towards the next support level at 0.7535. A successful test of the support at 0.7535 will push AUD/USD towards the next support level at the 20 EMA at 0.7520.

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