AUD/USD Daily Forecast – U.S. Dollar Starts The Week On A Strong Note

AUD/USD Video 22.03.21.

Australian Dollar Is Under Pressure At The Start Of The Week

AUD/USD faced resistance at the 50 EMA at 0.7730 and made an attempt to test the support at 0.7700 while the U.S. dollar gained some ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle above the resistance at the 92 level. The U.S. Dollar Index has already made several attempts to settle above this level, but these attempts yielded no results. If the U.S. Dollar Index settles above 92, it will head towards the next resistance at 92.25 which will put more pressure on AUD/USD.

There are no important economic reports scheduled to be released in Australia today so foreign exchange market traders will focus on the Existing Home Sales report from the U.S. Analysts expect that Existing Home Sales declined by 3% month-over-month in February as the housing market cooled down. New Home Sales report, which will be published tomorrow, is projected to show that New Home Sales decreased by 6.5% month-over-month in February.

Technical Analysis

AUD/USD failed to get back above the resistance at the 50 EMA at 0.7730 and is trying to gain additional downside momentum. The nearest support level for AUD/USD is located at 0.7700. This support level has already been tested several times and proved its strength.

In case AUD/USD declines below the support at 0.7700, it will head towards the next support at 0.7665. RSI is in the moderate territory so there is plenty of room to gain downside momentum in case the right catalysts emerge. If AUD/USD settles below the support at 0.7665, it will head towards the next support level at 0.7635.

On the upside, the nearest resistance level for AUD/USD is located at the 50 EMA at 0.7730. A move above this level will push AUD/USD towards the next resistance at the 20 EMA at 0.7750. In case AUD/USD settles above the 20 EMA, it will move towards the resistance at 0.7780. A move above this level will open the way to the test of the resistance at 0.7800.

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