AUD/USD Daily Forecast – Test Of Support At 0.7535

AUD/USD Video 15.12.20.

Australian Dollar Pulls Back Against U.S. Dollar

AUD/USD is currently trying to settle below the support at 0.7535 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to develop upside momentum. The nearest resistance level for the U.S. Dollar Index is located at 91. If the U.S. Dollar Index gets above this level, it will head towards the next resistance at 91.50 which will be bearish for AUD/USD.

However, it remains to be seen whether we’ll see any serious moves on the foreign exchange market ahead of the U.S. Fed Interest Rate Decision which will be announced tomorrow.

While the interest rate is expected to stay unchanged, many analysts believe that the Fed will expand its asset purchase program in order to put pressure on yields of long-dated bonds.

Today, traders will have a chance to evaluate the latest data on U.S. Industrial Production and Manufacturing Production. Analysts expect that Industrial Production increased by 0.3% month-over-month in November while Manufacturing Production also grew by 0.3%.

Technical Analysis

AUD/USD is testing the nearest support level at 0.7535. In case this test is successful, AUD/USD will get to the test of the next support at 0.7500.

A move below the support at 0.7500 will push AUD/USD towards the next support level at 0.7485. In case AUD/USD declines below the support at 0.7485, it will gain additional downside momentum and head towards the support level at 0.7450.

On the support side, AUD/USD needs to stay above 0.7535 to have a chance to develop upside momentum in the near term. RSI has moved out of the overbought territory so there is plenty of room to gain upside momentum in case the right catalysts emerge.

The next resistance level for AUD/USD is located at the recent highs at 0.7575. AUD/USD has recently made two attempts to settle above this level but faced strong resistance. In case AUD/USD manages to settle above 0.7575, it will move towards the next resistance level at 0.7600.

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