AUD/USD Daily Forecast – Test Of Support At 0.7290

AUD/USD Video 19.11.20.

U.S. Dollar Gains Ground Against Australian Dollar

AUD/USD is currently trying to get back below the support at 0.7290 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle above the nearest resistance level at 92.50. A move above this level will open the way to the test of the next resistance at 92.80 which will be bearish for AUD/USD.

Australia has recently reported that Unemployment Rate increased from 6.9% in September to 7% in October. Analysts expected that Unemployment Rate would grow to 7.2%. Meanwhile, the Employment Change report indicated that employment increased by 178,800 while analysts expected that it would decline by 30,000.

The positive economic data did not provide much support to the Australian dollar on the foreign exchange market as traders focused on the latest anti-virus restrictions in the U.S. and decreased their purchases of riskier currencies.

In addition, Australia will have to deal with the consequences of the new lockdown in the South Australia state, which imposed a strict six-day lockdown after officials found a new coronavirus outbreak.

Today, traders will also focus on the upcoming U.S. employment reports. Initial Jobless Claims are expected to decline to 707,000 while Continuing Jobless Claims are projected to drop to 6.47 million.

Technical Analysis

AUD/USD did not manage to settle above the resistance at 0.7325 and is trying to settle below the nearest support level at 0.7290.

If AUD/USD manages to settle below 0.7290, it will get to the test of the next support level at 0.7275. In case AUD/USD gets below the support at 0.7275, it will decline towards the next support level at the 20 EMA at 0.7240.

A move below the 20 EMA will signal that the current upside momentum has come to an end.

On the upside, AUD/USD needs to stay above the support at 0.7290 to have a chance to get to the test of the nearest resistance level at 0.7325.

If AUD/USD manages to get above 0.7325, it will move towards the next resistance level at the recent highs at 0.7340. A move above this level will open the way to the resistance at 0.7360.

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