Yahoo Finance AUD/USD Daily Forecast – Test Of Resistance At 0.7675
AUD/USD Video 14.04.21.
Australian Dollar Moves Higher Against U.S. Dollar
AUD/USD is currently trying to settle above the resistance at the 50 EMA at 0.7675 while the U.S. dollar is moving lower against a broad basket of currencies.
The U.S. Dollar Index has recently managed to get below the support at the 50 EMA at 91.80 and made an attempt to develop additional downside momentum. This attempt was not successful, and the U.S. Dollar Index moved back to the 50 EMA level. If the U.S. Dollar Index gets back above the 50 EMA, it will head towards the resistance at the 92 level which will be bearish for AUD/USD.
Today, Australia reported that Consumer Confidence Index improved from 111.8 in March to 118.8 in April compared to analyst consensus of 113. The report provided additional support to Australian dollar which was boosted by strong commodity markets and falling U.S. Treasury yields.
Traders will remain focused on the dynamics of U.S. Treasury yields which have significant impact on the foreign exchange market. Currently, the yield of 10-year Treasuries is trying to settle back above the 20 EMA at 1.635%. If this attempt is successful, it will have a good chance to develop additional upside momentum which will be bullish for the U.S. dollar.
Technical Analysis
AUD/USD managed to settle above the 20 EMA at 0.7650 and is trying to settle above the next significant resistance level at the 50 EMA at 0.7675. In case this attempt is successful, AUD/USD will move towards the resistance at 0.7700.
In case AUD/USD gets above the resistance at 0.7700, it will head towards the next resistance level which is located at 0.7720. A move above this level will open the way to the test of the resistance at 0.7750.
On the support side, the previous resistance at the 20 EMA at 0.7650 will likely serve as the first support level for AUD/USD although AUD/USD may also get some support at 0.7665.
If AUD/USD declines below the 20 EMA, it will head towards the support at 0.7635. A move below this level will push AUD/USD towards the major support level at 0.7600.
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This article was originally posted on FX Empire
