AUD/USD Daily Forecast – U.S. Dollar Remains Under Pressure Against Australian Dollar

AUD/USD Video 18.03.21.

Australian Dollar Continues To Gain Ground Against U.S. Dollar

AUD/USD gained strong upside momentum and continues to move higher while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle below the nearest support level at the 20 EMA at 91.35. If this attempt is successful, the U.S. Dollar Index will head towards the 50 EMA at 91.05 which will be bullish for AUD/USD.

It looks like comments from Fed Chair Jerome Powell were dovish enough for foreign exchange market traders. The U.S. dollar has recently made an attempt to rebound after yesterday’s sell-off but quickly lost momentum and found itself under additional pressure.

Today, Australia reported that Unemployment Rate declined from 6.4% in January to 5.8% in February. The Employment Change report indicated that employment increased by 88,700 in February. The reports showed that Australia’s labor market continued to recover thanks to the country’s success in virus containment.

Traders will also have a chance to take a look at the latest job market data from the U.S. Initial Jobless Claims report is expected to show that 700,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 4.14 million to 4.07 million.

Technical Analysis

AUD/USD is currently trying to settle above the resistance at 0.7820. If this attempt is successful, AUD/USD will move towards the next resistance at 0.7860.

In case AUD/USD manages to settle above the resistance at 0.7860, it will head towards the resistance at 0.7875. A move above this level will open the way to the test of the resistance at 0.7890.

On the support side, the nearest support level for AUD/USD is located at 0.7800. If AUD/USD declines below this level, it will head towards the support at 0.7780. In case AUD/USD gets below the support at 0.7780, it will move towards the next support level which is located at the 20 EMA at 0.7765.

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