Yahoo Finance AUD/USD Daily Forecast – Test Of Resistance At 0.7400
AUD/USD Video 30.11.20.
U.S. Dollar Continues To Lose Ground Against Australian Dollar
AUD/USD has recently made an attempt to settle above the resistance at 0.7400 while U.S. dollar remained under serious pressure against a broad basket of currencies.
The U.S. Dollar Index declined below the support at the yearly lows at 91.75 and is trying to develop additional downside momentum. If this attempt is successful, the U.S. Dollar Index will move towards the support at 71 which will be bullish for AUD/USD.
China has recently reported that NBS Manufacturing PMI increased from 51.4 in October to 52.1 in November, providing support to riskier assets on the foreign exchange market.
Tomorrow, China will report Caixin Manufacturing PMI which is projected to decrease from 53.6 to 53.5 but traders will expect a positive surprise. China is Australia’s main trading partner so positive economic data from China may provide additional support to AUD/USD.
AUD/USD traders will also follow the latest data on U.S. Pending Home Sales which will be published later today. Analysts expect that Pending Home Sales increased by 1% month-over-month in October. On a year-over-year basis, Pending Home Sales are projected to increase by 18.1%.
Technical Analysis
AUD/USD managed to settle above the resistance at 0.7380 and made an attempt to get above the next resistance level at 0.7400. The resistance at 0.7400 is a strong obstacle on the way up for AUD/USD but the Australian dollar has good chances to continue its upside move.
In case AUD/USD settles above the resistance at 0.7400, it will get to the test of the next resistance level at September highs at 0.7415. A move above the resistance at 0.7415 will signal that AUD/USD is ready to develop additional upside momentum.
On the support side, the previous resistance level at 0.7380 will serve as the first support level for AUD/USD. If AUD/USD manages to settle below this level, it will head towards the next support at 0.7360.
The support at 0.7360 has been tested several times during recent trading sessions and proved its strength. If AUD/USD moves below the support at 0.7360, it will gain downside momentum and head towards the support at 0.7340.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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