AUD/USD Daily Forecast – U.S. Dollar Is Gaining Ground Against Australian Dollar
AUD/USD Video 15.03.21.
Australian Dollar Is Under Pressure At The Start Of The Week
AUD/USD is currently trying to settle below the support at the 50 EMA at 0.7725 while the U.S. Dollar is gaining ground against a broad basket of currencies.
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The U.S. Dollar Index is trying to get to the test of the resistance level at 92. If the U.S. Dollar Index manages to settle above this level, it will head towards the next resistance at 92.25 which will be bearish for AUD/USD.
Australia has recently reported that New Home Sales increased by 22.9% month-over-month in February compared to analyst forecast which called for growth of just 2%.
The report did not provide additional support to Australian dollar as foreign exchange market traders remained focused on rising Treasury yields which boost the U.S. dollar.
On Wednesday, the Fed will announce its Interest Rate Decision and provide commentary on the current economic situation which may have a significant impact on Treasury markets and on the foreign exchange market.
Today, traders will also have a chance to take a look at NY Empire State Manufacturing Index which is projected to grow from 12.1 in February to 14.5 in March.
Technical Analysis
AUD/USD made an attempt to settle below the support at the 50 EMA at 0.7725 but did not develop sufficient downside momentum. In case AUD/USD manages to settle below this level, it will head towards the next support level at 0.7700.
If AUD/USD declines below the support at 0.7700, it will gain additional downside momentum and head towards the next support level which is located at 0.7665.
On the upside, AUD/USD needs to stay above the 50 EMA at 0.7725 to have a chance to develop upside momentum in the near term. The nearest resistance level for AUD/USD is located at the 20 EMA at 0.7755.
If AUD/USD gets above the 20 EMA, it will head towards the next resistance at 0.7780. A successful test of the resistance at 0.7780 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.