AUD/USD Daily Forecast – Another Test Of Resistance At 0.7380
AUD/USD Video 02.12.20.
U.S. Dollar Remains Under Pressure Against Australian Dollar
AUD/USD is testing the resistance at 0.7380 while the U.S. dollar remains under serious pressure against a broad basket of currencies.
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The U.S. Dollar Index has recently made an attempt to settle below the nearest support which has emerged at 91.15 but failed to develop sufficient downside momentum. If the U.S. Dollar Index manages to settle below this support level, it will get to the test of the next support at 91 which will be bullish for AUD/USD.
Australia reported that third-quarter GDP Growth Rate was 3.3% compared to analyst consensus of 2.6%. GDP grew at a faster pace than expected due to Australia’s success in containing the virus. In addition, Australia’s main trading partner, China, has fully recovered from the blow dealt by the pandemic.
Today, foreign exchange market traders will have a chance to evaluate U.S. ADP Employment Change report for November which is projected to show that private businesses hired 400,000 workers. A softer-than-expected report may increase pressure on U.S. lawmakers which have recently restarted stimulus negotiations.
Technical Analysis
AUD/USD continues its attempts to settle above the resistance level at 0.7380. If AUD/USD manages to settle above this level, it will get to the test of the next resistance at 0.7400. A move above the resistance at 0.7400 will open the way to the test of the resistance at 0.7415.
On the support side, the nearest support level for AUD/USD is located at 0.7360. If AUD/USD declines below this level, it will head towards the next support at 0.7340. This support level has been tested in previous trading sessions and proved its strength.
In case AUD/USD declines below the support at 0.7340, it will gain downside momentum and quickly get to the test of the next support level near the 20 EMA at 0.7325.
From a big picture point of view, AUD/USD is consolidating just below the major resistance area at 0.7400 – 0.7415. If AUD/USD manages to stay above the support at 0.7360, it will have a good chance to gain upside momentum and continue the upside trend that was stopped in early September.
For a look at all of today’s economic events, check out our economic calendar.