AUD/USD Daily Forecast – Another Test Of Resistance At 0.7740

AUD/USD

Australian Dollar Gains Ground Against U.S. Dollar

AUD/USD is currently trying to settle above the resistance at 0.7740 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to get to the test of the nearest support level at 90.30 but failed to develop sufficient downside momentum and rebounded closer to 90.40. The nearest resistance level for the U.S. Dollar Index is located at 90.50. If the U.S. Dollar Index settles above this level, it will head towards the resistance at 90.65 which will be bearish for AUD/USD.

Today, foreign exchange market traders will focus on U.S. employment reports and general market sentiment. U.S. Initial Jobless Claims are expected to decline from 779,000 to 757,000 as the situation in the job market continues to stabilize. At the same time, it is clear that the economy needs another round of stimulus which should be bullish for riskier assets.

Technical Analysis

AUD/USD is currently testing the nearest resistance level at 0.7740. Yesterday, AUD/USD made an attempt to settle above this level but failed to develop sufficient upside momentum.

If AUD/USD settles above 0.7740, it will get to another test of the next resistance level at 0.7760. In case AUD/USD gets above 0.7760, it will move towards the resistance at 0.7780. A successful test of this level will push AUD/USD towards the next resistance at 0.7800.

On the support side, the nearest support level for AUD/USD is located at 0.7725. This support level has been tested several times in recent trading sessions and proved its strength.

In case AUD/USD declines below the support at 0.7725, it will head towards the next support level at 0.7700. A successful test of the support at 0.7700 will open the way to the test of the next support level at the 20 EMA at 0.7690.

From a big picture point of view, AUD/USD gained strong upside momentum and has good chances to continue its upside move in case the right catalysts emerge.