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AUD/USD Daily Forecast – Test Of Resistance At 0.7760

Vladimir Zernov
·2-min read

AUD/USD Video 13.01.21.

Australian Dollar Is Mostly Flat Against U.S. Dollar

AUD/USD is currently testing the resistance level at 0.7760 while the U.S. dollar remains under pressure against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle below the nearest support level at 90. In case the U.S. Dollar Index manages to settle below this level, it will move towards the next support level at 89.75 which will be bullish for AUD/USD.

The rapide increase of the U.S. Treasury yields, which provided material support to the American currency in recent days, was stopped, and the U.S. dollar found itself under pressure.

Foreign exchange market traders will continue to pay close attention to the latest developments in the bond market since stronger yields may push the U.S. dollar to higher levels.

Today, the U.S. will provide inflation data for December. Analysts expect that Inflation Rate grew by 1.3% year-over-year while Core Inflation Rate increased by 1.6%. It remains to be seen whether inflation data will have a material impact on the dynamics of the U.S. dollar as traders may continue to focus on yields and the potential new stimulus package.

Technical Analysis

AUD/USD managed to get 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 the resistance at 0.7760, it will move towards the next resistance level at 0.7800 although it may also face some resistance at 0.7780. In case AUD/USD gets above the resistance at 0.7800, it will continue its upside move and get to the test of the next resistance level which is located at January highs at 0.7820.

On the support side, the previous resistance level at 0.7740 will serve as the first support level for AUD/USD. In case AUD/USD declines below this level, it will move towards the next support at 0.7700. A successful test of this level will open the way to the test of the support at the 20 EMA at 0.7685.

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

This article was originally posted on FX Empire