AUD/USD Daily Forecast – U.S. Dollar Is Under Pressure At The Start Of The Week

AUD/USD Video 19.04.21.

Australian Dollar Gains Ground Against U.S. Dollar

AUD/USD continues its attempts to settle above the resistance at 0.7750 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get below the support at 91.50 and is trying to settle below the next support level at 91.30. If the U.S. Dollar Index settles below this level, it will head towards the next support at the 91 level which will be bullish for AUD/USD.

Today, Australia reported that New Home Sales increased by 90.3% month-over-month in March after growing by 22.9% in February. Analysts expected that New Home Sales would grow by 20%. Low interest rates continue to provide material support to the Australian housing market which is growing fast.

Foreign exchange market traders will also keep an eye on the developments in commodity markets which have been moving higher in recent trading sessions. In case commodity markets continue to gain ground, commodity-related currencies like Australian dollar will get more support.

Technical Analysis

AUD/USD settled above the resistance at 0.7720 and managed to get above the next resistance level which is located at 0.7750. Currently, AUD/USD is moving towards the resistance at 0.7775. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If AUD/USD settles above 0.7775, it will head towards the next resistance level at 0.7800. A move above the resistance at 0.7800 will open the way to the test of the resistance at 0.7820.

On the support side, a move below 0.7750 will push AUD/USD towards the next support at 0.7720. If AUD/USD manages to settle below the support at 0.7720, it will move towards the next support at 0.7700. A successful test of the support at 0.7700 will open the way to the test of the support at the 50 EMA at 0.7690. The 20 EMA is located in the nearby, so AUD/USD will likely get material support in the 0.7685 – 0.7700 area.

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