AUD/USD Daily Forecast – Australian Dollar Starts The Week On A Strong Note

AUD/USD Video 23.11.20.

Australian Dollar Tests The Nearest Resistance Level

AUD/USD has managed to get above 0.7300 and made an attempt to settle above the resistance at 0.7325 while the U.S. dollar continued to lose ground against a broad basket of currencies.

The U.S. Dollar Index remains under pressure although it looks like it gets strong support near 92.10. If the U.S. Dollar Index manages to settle below this level, it will likely gain significant downside momentum which will be bullish for AUD/USD.

Today, Australia provided flash PMI data for November. Manufacturing PMI increased from 54.2 in October to 56.1 in November compared to analyst forecast of 54. Meanwhile, Services PMI increased from 53.8 to 54.9 compared to analyst forecast of 53.5. Numbers above 50 show expansion.

PMI reports were much better than expected, and it looks like Australia’s success in virus containment provided strong support to the country’s economy.

Later, foreign exchange market traders will have a chance to evaluate the latest PMI data from the U.S. Manufacturing PMI is expected to decline from 53.4 to 53 while Services PMI is projected to drop from 56.9 to 55.3.

Technical Analysis

AUD/USD gained some upside momentum and is trying to settle above the nearest resistance level at 0.7325. This resistance level has already been tested several times in recent trading sessions, but AUD/USD failed to get above 0.7325.

In case AUD/USD manages to settle above the resistance at 0.7325, it will get to the test of the next resistance level at November highs at 0.7340. A successful test of this level will push AUD/USD towards the next resistance at 0.7360.

On the support side, the nearest support level for AUD/USD is located at 0.7290. In case AUD/USD declines below 0.7290, it will get to the test of the next support level at 0.7275. A move below the support at 0.7275 will open the way to the next support level at the 20 EMA at 0.7255.

I’d note that AUD/USD has recently received strong support in the 0.7255 – 0.7290 area, so a move below the 20 EMA at 0.7255 will signal that AUD/USD is ready to gain material downside momentum.

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