AUD/USD Daily Forecast – Test Of Resistance At 0.7910

AUD/USD Video 23.02.21.

Australian Dollar Tries To Continue Its Upside Move

AUD/USD is currently trying to settle above the resistance at 0.7910 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index managed to get to the test of the support at the 90 level and is trying to move lower. In case the U.S. Dollar Index declines below the 90 level, it will head towards the support at 89.75 which will be bullish for AUD/USD.

Commodity price dynamics and Fed Chair Powell testimony will likely be in focus of foreign exchange market traders today. The recent increase in Treasury yields failed to provide support to the U.S. dollar but has already managed to put some pressure on the U.S. stock market.

Powell will have to discuss the implications of higher Treasury yields, and his comments may have a significant impact on the U.S. dollar.

Meanwhile, commodity-related currencies are supported by the strong rally in the oil and copper markets. If this rally continues, Australian dollar may get additional support.

Technical Analysis

AUD/USD is currently trying to stay above the nearest resistance level at 0.7910. If this attempt is successful, AUD/USD will get to the test of the next resistance which has emerged at 0.7935.

A move above the resistance at 0.7935 will push AUD/USD towards the resistance at 0.7950. In case AUD/USD settles above this level, it will head towards the next resistance at 0.7980. It should be noted that AUD/USD has not visited this territory for several years so it remains to be seen whether previous levels will be relevant for today’s trading.

On the support side, a move below 0.7910 will push AUD/USD towards the support at 0.7890. If AUD/USD declines below this level, it will head towards the next support level which is located at 0.7875. A move below this level will open the way to the test of the support at 0.7860.

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