AUD/USD Daily Forecast – Another Test Of Support At 0.7600 Yielded No Results

AUD/USD Video 05.04.21.

Australian Dollar Is Mostly Flat Against U.S. Dollar

AUD/USD is currently trying to settle below the support at 0.7600 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to settle above the 93 level and is moving higher. The next resistance level is located at 93.20. If the U.S. Dollar Index gets to the test of this level, AUD/USD will find itself under more pressure.

Today, foreign exchange market traders will take a look at the final reading of U.S. Services PMI report which is projected to show that Services PMI increased from 59.8 in February to 60 in March. Factory Orders are projected to decrease by 0.5% month-over-month in February.

Tomorrow, traders will focus on the Reserve Bank of Australia’s Interest Rate Decision. The interest rate is projected to remain unchanged at 0.1% so the market will pay close attention to RBA commentary.

Traders will also monitor the developments on the U.S. government bond debt front. Treasury are moving higher, and the yield of 10-year Treasuries is at 1.72% which is close to recent highs near 1.77%. If Treasury yields get to new highs, U.S. dollar will get more support which will be bearish for AUD/USD.

Technical Analysis

AUD/USD has recently made another attempt to settle below the support at 0.7600 but failed to develop sufficient downside momentum. As a result, AUD/USD remains in the range between the support at 0.7600 and the resistance at 0.7635.

If AUD/USD declines below the support at 0.7600, it will gain downside momentum and head towards the support at 0.7575. A successful test of the support at 0.7575 will push AUD/USD towards the next support which is located at the recent lows at 0.7535.

On the upside, a move above the resistance at 0.7635 will open the way to the test of the resistance at the 20 EMA at 0.7655. In case AUD/USD gets above the 20 EMA, it will move towards the next resistance at the 50 EMA at 0.7685. A successful test of the resistance at the 50 EMA will push AUD/USD towards the resistance at 0.7700.

For a look at all of today’s economic events, check out our economic calendar.