AUD/USD Daily Forecast – U.S. Dollar Moves Higher At The Start Of The Week

AUD/USD Video 07.12.20.

Australian Dollar Is Under Pressure At The Beginning Of The Week

AUD/USD is testing the nearest support level at 0.7415 while the U.S. dollar is gaining ground against a broad basket of currencies.

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

On Friday, U.S. reported that Unemployment Rate decreased from 6.9% in October to 6.7% in November. Meanwhile, the Non Farm Payrolls report indicated that the economy created 245,000 jobs in November. It is clear that the U.S. job market is under some pressure from the second wave of the virus but the economic rebound continues.

Today, foreign exchange market traders will wait for updates on U.S. stimulus negotiations. It looks like Republicans and Democrats are willing to work on a deal which will be based on the latest $908 billion proposal from a bipartisan group of lawmakers. However, it remains to be seen whether they will be ready to negotiate a compromise deal after months of unsuccessful negotiations.

Technical Analysis

AUD/USD gained downside momentum and is currently trying to settle below the nearest support level at 0.7415. If this attempt is successful, AUD/USD will get to the test of the next support at 0.7400.

A move below the support at 0.7400 will push AUD/USD towards the next support level at 0.7380. If AUD/USD declines below the support at 0.7380, it will head towards the next support level near the 20 EMA at 0.7360. I’d expect that AUD/USD will attract material interest from traders in case it manages to get to the test of the 20 EMA level.

On the upside, AUD/USD needs to get back above 0.7415 to have a chance to gain upside momentum in the near term. If AUD/USD settles above 0.7415, it will move towards the resistance level at 0.7440. A successful test of this level will open the way to the test of the recent highs at 0.7450.

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