AUD/USD Daily Forecast – Test Of Resistance At 0.7800
AUD/USD Video 20.04.21.
Australian Dollar Stays Strong Against U.S. Dollar
AUD/USD is currently testing the resistance at 0.7800 while the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index managed to get below the support at the 91 level and is trying to gain additional downside momentum. In case this attempt is successful, the U.S. Dollar Index will move towards the support at 90.70 which will be bullish for AUD/USD.
Today, Reserve Bank of Australia released minutes from its meeting which took place on April 6. The Bank noted that Australia’s economic recovery was stronger than expected while employment conditions returned to pre-pandemic levels.
In addition to RBA meeting minutes, foreign exchange market traders will focus on the developments in commodity markets. The rally continues despite worries about the second wave of the virus in India. Copper has moved closer to yearly highs while WTI oil managed to get above the $64 level. If commodity markets continue to move higher, commodity-related currencies like Australian dollar will get more support.
Technical Analysis
AUD/USD managed to settle above the resistance at 0.7775 and is testing the next resistance level at 0.7800. In case AUD/USD manages to settle above this level, it will head towards the next resistance at 0.7820. RSI remains in the moderate territory so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
In case AUD/USD gets above the resistance at 0.7820, it will move towards the next resistance at 0.7850. A successful test of this level will open the way to the test of the resistance at 0.7880.
On the support side, the previous resistance at 0.7775 will likely serve as the first support level for AUD/USD. In case AUD/USD declines below this level, it will move towards the support at 0.7750. A successful test of the support at 0.7750 will open the way to the test of the support at 0.7720.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
