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AUD/USD Daily Forecast – Australian Dollar Remains Strong

Vladimir Zernov
·2-min read

AUD/USD Video 21.01.21.

Australian Dollar Moves Higher Against U.S. Dollar

AUD/USD is currently trying to settle above the resistance at 0.7760 while the U.S. dollar remains under pressure against a broad basket of currencies.

The U.S. Dollar Index has managed to get below the support at the 20 EMA at 90.35 and is trying to develop additional downside momentum. If this attempt is successful, the U.S. Dollar Index will move closer to the 90 level which will be bullish for AUD/USD.

Australia has recently reported that Unemployment Rate declined from 6.8% in November to 6.6% in December. Analysts expected that Unemployment Rate would decline to 6.7%. Meanwhile, Employment Change report indicated that employment increased by 50,000 in December, in line with analyst forecasts.

Today, foreign exchange market traders will also focus on the employment data from the U.S. Initial Jobless Claims report is expected to show that 910,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are expected to increase from 5.3 million to 5.4 million.

Joe Biden’s stimulus plan has recently provided material support to commodity-related currencies, including Australian dollar. If traders continue to focus on the upcoming stimulus, Australian dollar may get additional support.

Technical Analysis

AUD/USD managed to settle above the resistance at 0.7740 and is trying to settle above the next resistance level at 0.7760. RSI remains in the moderate territory so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If AUD/USD settles above 0.7760, it will get to another test of the next resistance level at 0.7780. A move above this level will push AUD/USD towards the resistance at 0.7800. In case AUD/USD gets above the resistance at 0.7800, it will move towards the next resistance level which is located at January highs at 0.7820.

On the support side, the previous resistance at 0.7740 will likely serve as the first support level for AUD/USD. A move below this level will push AUD/USD towards the support at 0.7725. If AUD/USD declines below 0.7725, it will move towards the 20 EMA at 0.7705.

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

This article was originally posted on FX Empire