AUD/USD Daily Forecast – U.S. Dollar Gains Ground Against Australian Dollar

Australian Dollar Moves Lower Ahead Of The Weekend

AUD/USD is trying to settle below the support at 0.7635 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is currently trying to get above the resistance at the 50 EMA at 90.80. If this attempt is successful, the U.S. Dollar Index will move towards the next resistance level at 91.10 which will put pressure on AUD/USD.

Yesterday, the U.S. released Initial Jobless Claims and Continuing Jobless Claims reports which indicated that the situation in the job market has started to stabilize after the recent blow dealt by the second wave of the virus. Interesingly, these reports failed to provide support to riskier currencies.

Today, foreign exchange market traders will take a look at Personal Income and Personal Spending data from the U.S. Personal Income is projected to grow by 0.1% month-over-month in December while Personal Spending is expected to decline by 0.4%.

Technical Analysis

AUD/USD is currently testing the nearest support level at 0.7635. Yesterday, AUD/USD made an attempt to settle below this level and even managed to get below 0.7600 but lost downside momentum and rebounded closer to the resistance at 0.7675.

If AUD/USD settles below the support at 0.7635, it will get to another test of the resistance level at the 50 EMA at 0.7615. A successful test of the 50 EMA level will open the way to the test of the next support level which is located at 0.7575. A move below the support at 0.7575 will push AUD/USD towards the next support at 0.7540.

On the upside, the nearest resistance level for AUD/USD is located at 0.7675. In case AUD/USD manages to settle above this level, it will move towards the next resistance at the 20 EMA at 0.7695. If AUD/USD settles above the resistance at the 20 EMA, it will gain additional upside momentum and get to the test of the next resistance level which is located at 0.7725.