Yahoo Finance AUD/USD Daily Forecast – Test Of Support At 0.7675
AUD/USD Video 18.01.21.
Australian Dollar Is Under Pressure At The Start Of The Week
AUD/USD managed to get below the 20 EMA at 0.7690 and is trying to settle below the next support level at 0.7675 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index is currently trying to get above the resistance at the 50 EMA at 90.95. A move above this level will push the U.S. Dollar Index towards the next resistance at 91.20 which will be bearish for AUD/USD.
Today, China reported that its GDP grew by 6.5% year-over-year in the fourth quarter of 2020. Meanwhile, China’s Industrial Production increased by 7.3% while Retail Sales grew by 4.6%.
The positive economic data from China failed to provide material support to commodity-related currencies on the foreign exchange market so the Australian dollar continued to move lower against the U.S. dollar.
The former Fed Chair Janet Yellen, who will be nominated by President-elect Joe Biden for Treasury Secretary, has reportedly planned to emphasize that the U.S. was not seeking a weaker dollar.
This statement may provide additional support to the American currency although it remains to be seen whether the current rebound of the U.S. dollar will be sustainable as the U.S. will soon introduce a huge $1.9 trillion stimulus package.
Technical Analysis
AUD/USD is currently trying to get below the nearest support level at 0.7675. If this attempt is successful, AUD/USD will move towards the next support level at 0.7635.
There are no material levels between 0.7675 and 0.7635 so this move may be fast. A successful test of the support at 0.7635 will open the way to the test of the next support level at 0.7600.
On the upside, the 20 EMA at 0.7690 will likely serve as the first resistance level for AUD/USD. The next resistance is located at 0.7700 so AUD/USD will likely face material resistance in the 0.7690 – 0.7700 area.
If AUD/USD gets above the resistance at 0.7700, it will head towards the next resistance at 0.7725. A move above this level will open the way to the test of the resistance at 0.7740.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
