AUD/USD Daily Forecast – Traders Wait For Clues From Fed MeetingAUD/USD did not manage to settle above the resistance at 0.7760 and moved lower.
AUD/USD Video 27.01.21.
Australian Dollar Moves Lower Against U.S. Dollar
AUD/USD failed to settle above the resistance at 0.7760 and is currently trying to settle below the nearest support level at 0.7740 while the U.S. dollar is gaining some ground against a broad basket of currencies.
75% of retail CFD investors lose money
The U.S. Dollar Index did not manage to settle below the support level at 90 but remains below the nearest resistance level at the 20 EMA at 90.30. If the U.S. Dollar Index settles above the 20 EMA, it will gain additional upside momentum which will be bearish for AUD/USD.
Today, Australia reported that fourth-quarter Inflation Rate increased by 0.9% year-over-year compared to analyst consensus of 0.7%. Australia’s success in its battle against coronavirus provided support to prices. Meanwhile, Business Confidence declined from 13 in November to 4 in December compared to analyst forecast of 10.
Today, trading action in AUD/USD may be muted as foreign exchange market traders wait for the U.S. Fed Interest Rate Decision and the subsequent commentary. While most analysts expect that the Fed will remain very dovish, it remains to be seen whether Fed’s commentary will put additional pressure on the American currency.
AUD/USD is currently testing the nearest support level at 0.7740. If AUD/USD manages to settle below this level, it will move towards the next support at 0.7725.
If AUD/USD declines below the support level at 0.7725, it will head towards the next support at the 20 EMA 0.7715. A move below the 20 EMA will signal that AUD/USD is ready to develop additional downside momentum.
It should be noted that AUD/USD has recently made several attempts to settle below the 20 EMA, but each attempt was followed by a quick rebound so AUD/USD will likely need additional catalysts for a downside move.
On the upside, the nearest resistance level for AUD/USD is located at 0.7760. If AUD/USD gets above this level, it will head towards the next resistance at 0.7780. A successful test of this level will push AUD/USD towards the resistance at 0.7800.
For a look at all of today’s economic events, check out our economic calendar.