AUD/USD Daily Forecast – Test Of The Major Support Level At 0.7600

AUD/USD Video 09.04.21.

U.S. Dollar Gains Ground Against Australian Dollar

AUD/USD is currently testing the major support level at 0.7600 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index managed to get above the resistance at 92.15 and made an attempt to settle above the next resistance level which is located at the 20 EMA at 92.35. A move above this level will open the way to the test of the resistance at 92.50 which will be bearish for AUD/USD.

The recent U.S. Initial Jobless Claims report indicated that 744,000 Americans filed for unemployment benefits in a week compared to analyst consensus of 680,000. The foreign exchange market has mostly ignored the report as traders focused on Fed’s dovish comments and the dynamics of U.S. government bond markets.

Treasury yields were under pressure on Thursday but the market situation has changed quickly. Currently, Treasury yields are moving higher, indicating that traders remain worried about inflation. If Treasury yields continue to increase, U.S. dollar will get more support.

Traders will also keep an eye on commodity markets. WTI oil is currently trying to settle below the support at the 50 EMA at $59.20. If this attempt is successful, WTI oil will gain additional downside momentum which will be bearish for commodity-related currencies including Australian dollar.

Technical Analysis

AUD/USD has recently made another attempt to settle below the major support level at 0.7600. This support level has already been tested many times and proved its strength.

In case AUD/USD settles below the support at 0.7600, it will gain downside momentum and head towards the next support level which is located at 0.7575. A successful test of the support at 0.7575 will push AUD/USD towards the support at 0.7535. In case AUD/USD declines below this level, it will head towards the next support at 0.7490.

On the upside, the nearest resistance level for AUD/USD is located at 0.7635. In case AUD/USD settles above this level, it will move towards the 20 EMA at 0.7650. A successful test of the 20 EMA will push AUD/USD towards the resistance at 0.7665. In case AUD/USD gets above 0.7665, it will move towards the 50 EMA at 0.7680.

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