AUD/USD Daily Forecast – Resistance At 0.7750 Stays Strong

AUD/USD Video 16.04.21.

Australian Dollar Pulls Back Against U.S. Dollar

AUD/USD did not manage to settle above the resistance at 0.7750 and is moving lower while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the resistance at the 50 EMA at 91.80 and is moving towards the nearest support level at 91.50. If the U.S. Dollar Index manages to settle below the support at 91.50, it will move towards the next support level at 91.30 which will be bullish for AUD/USD.

Today, foreign exchange market traders will focus on the economic data from the U.S. Analysts expect that Building Permits increased by 2.9% month-over-month in March while Housing Starts grew by 11.2%.

Consumer Confidence report is projected to show that Consumer Confidence increased from 84.9 in March to 89.6 in April. Yesterday’s Retail Sales report indicated that Retail Sales increased by 9.8% month-over-month in March compared to analyst consensus of 5.9%, and it looks that Consumer Confidence report may also exceed analyst expectations.

Technical Analysis

AUD/USD failed to settle above the resistance at 0.7750 and pulled back. The nearest support level for AUD/USD is located at 0.7720. In case AUD/USD declines below this level, it will move towards the next support at 0.7700. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If AUD/USD settles below the support at 0.7700, it will head towards the next support level which is located at the 50 EMA at 0.7685. A move below the 50 EMA will open the way to the test of the support at the 20 EMA at 0.7670.

On the upside, a move above the resistance at 0.7750 will push AUD/USD towards the next resistance at 0.7775. In case AUD/USD gets above this level, it will head towards the resistance at 0.7800. A successful test of this level will open the way to the test of the resistance at 0.7820.

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