AUD/USD Daily Forecast – Test Of Resistance At 0.7635

AUD/USD Video 04.02.21.

U.S. Dollar Is Losing Ground Against Australian Dollar

AUD/USD is currently trying to settle above the resistance at 0.7635 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is slowly moving towards the resistance level at 91.50. If the U.S. Dollar Index manages to get above this level, it will head towards the resistance at 91.75 which will be bearish for AUD/USD.

Today, foreign exchange market traders will have a chance to take a look at the latest U.S. employment data. Analysts expect that Initial Jobless Claims declined from 847,000 to 830,000 while Continuing Jobless Claims decreased from 4.77 million to 4.7 million.

Yesterday’s ADP Employment Report indicated that private businesses hired 174,000 workers in January so it looks like the situation in the job market has stabilized. However, some traders may prefer to wait for the Non Farm Payrolls report which will be published on Friday before making final conclusions.

While the U.S. dollar is gaining ground against a broad basket of currencies, it remains under pressure against Australian dollar as commodity-related currencies are supported by the recent rally in the oil market. If this rally continues, Australian dollar may get additional support.

Technical Analysis

AUD/USD is currently testing the nearest resistance level which is located at 0.7635. If AUD/USD manages to settle above this level, it will head towards the next resistance at 0.7660.

A move above the resistance at 0.7660 will open the way to the test of the resistance at the 20 EMA at 0.7670. If AUD/USD settles above 0.7670, it will head towards the next resistance at 0.7700.

On the support side, the nearest support level for AUD/USD is located at the 50 EMA at 0.7615. If AUD/USD declines below this level, it will head towards the next support level at 0.7600. In case AUD/USD manages to settle below the support at 0.7600, it will gain additional downside momentum and move towards the next support level which is located at 0.7575.

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