AUD/USD Daily Forecast – Test Of Support At 0.7600

AUD/USD Video 24.03.21.

Australian Dollar Continues To Lose Ground Against U.S. Dollar

AUD/USD is currently trying to settle below the support at 0.7600 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index gained strong upside momentum and is currently testing the resistance at 92.50. In case this test is successful, the U.S. Dollar Index will head towards the resistance at 92.70 which will be bearish for AUD/USD.

Today, Australia provided flash readings of Manufacturing PMI and Services PMI reports for March. Manufacturing PMI increased from 56.9 in February to 57 in March compared to analyst forecast of 56.2. Services PMI grew from 53.4 to 56.2 compared to analyst forecast of 54. The country’s success in virus containment continued to provide support to Australia’s economy.

However, Australia’s economy is not immune to the pandemic. Australian dollar found itself under pressure in recent trading sessions together with other commodity-related currencies as commodity markets moved lower. Concerns about the third wave of the virus in Europe dealt a serious blow to the oil market, and WTI oil made an attempt to settle below $57.50. If the sell-off continues, Australian dollar will continue to move lower.

Technical Analysis

AUD/USD gained strong downside momentum and managed to settle below the support at 0.7635. Curently, AUD/USD is testing the next support level which is located at 0.7600. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If AUD/USD settles below the support at 0.7600, it will head towards the next support level at 0.7575. A move below this level will open the way to the test of the support at 0.7535. In case AUD/USD settles below 0.7535, it will head towards the support at 0.7490.

On the upside, previous support at 0.7635 will serve as the first resistance level for AUD/USD. If AUD/USD manages to settle above this level, it will head towards the next resistance at 0.7665. A move above 0.7665 will push AUD/USD towards the resistance at 0.7700.

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