AUD/USD Daily Forecast – U.S. Dollar Pulls Back After Yesterday’s Upside Move

AUD/USD Video 09.03.21.

Australian Dollar Attempts To Rebound Against U.S. Dollar

AUD/USD is trying to settle above the resistance at 0.7665 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index is currently stuck in the range between the support at 92.25 and the resistance at 92.50. If the U.S. Dollar Index manages to settle below the support at 92.25, it will move towards the support level at 92 which will be bullish for AUD/USD.

Australia has recently provided Business Confidence report which indicated that Business Confidence increased from 12 in January to 16 in February compared to analyst forecast of 11.

Meanwhile, foreign exchange market traders remain focused on the developments in the U.S. government bond market. Treasury yields have pulled back from recent highs which is bearish for the U.S. dollar although it remains to be seen whether the current pullback will be sustainable.

WTI oil has also pulled back from yesterday’s highs as Houthis’ attack on Saudi Aramco facilities dealt no damage which is bearish for commodity-related currencies including Australian dollar.

Technical Analysis

AUD/USD has recently made an attempt to settle below the support at 0.7635 but failed to develop sufficient downside momentum and rebounded towards the resistance at 0.7665. If AUD/USD settles above this level, it will head towards the next resistance level at 0.7700.

A move above the resistance at 0.7700 will open the way to the test of the next resistance level which is located at the 50 EMA at 0.7715. If AUD/USD gets above this level, it will gain additional upside momentum and head towards the resistance at the 20 EMA at 0.7750.

On the support side, the nearest support level for AUD/USD is located at 0.7635. This support level has already been tested several times and proved its strength. In case AUD/USD declines below this level, it will head towards the next support level at 0.7600.

A move below the support at 0.7600 will push AUD/USD towards the support at 0.7575.

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