AUD/USD Daily Forecast – Test Of Resistance At 0.7670

AUD/USD Video 08.02.21.

Australian Dollar Tries To Gain Ground Against U.S. Dollar At The Start Of The Week

AUD/USD is currently trying to settle above the 20 EMA at 0.7670 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the nearest resistance level at 91.10 but failed to develop sufficient upside momentum and remained in the range between 91 and 91.10. If the U.S. Dollar Index declines below the 91 level, it will head towards the support level at the 50 EMA at 90.85 which will be bullish for AUD/USD.

There are no important economic reports scheduled to be released in the U.S. and Australia today. Tomorrow, Australia will provide Business Confidence report for January. Analysts expect that Business Confidence increased from 4 to 5 and remained in the positive territory thanks to the country’s success in its battle against coronavirus.

Foreign exchange market traders will also keep an eye on the latest developments in the oil market. Currently, WTI oil is moving towards the $58 level while Brent oil has already managed to get above the $60 level. The recent rally provided material support to commodity-related currencies, and the continuation of this rally may push AUD/USD to higher levels.

Technical Analysis

AUD/USD managed to get above the resistance at 0.7660 and is trying to settle above the next resistance level at the 20 EMA at 0.7670. If this attempt is successful, AUD/USD will head towards the resistance at 0.7700.

In case AUD/USD gets above the resistance at 0.7700, it will head towards the next resistance level at 0.7725. A move above this level will open the way to the test of the resistance at 0.7740.

On the support side, the previous resistance at 0.7760 will serve as the first support level for AUD/USD. If AUD/USD declines below this level, it will head towards the support at 0.7635. A move below this level will push AUD/USD towards the support at the 50 EMA at 0.7625.

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