AUD/USD Daily Forecast – U.S. Dollar Tries To Rebound Ahead Of The Weekend

AUD/USD Video 18.12.20.

[fx-article-ad]Australian Dollar Pulls Back After Yesterdays Upside Move

AUD/USD is currently trying to settle below 0.7600 while the U.S. dollar is gaining ground against a broad basket of currencies.

[fx-primis-ad]

The U.S. Dollar Index is testing the resistance at the 90 level. If the U.S. Dollar Index manages to get back above the 90 level, it will move towards 90.15 which will be bearish for AUD/USD.

Yesterday, U.S. reported that Initial Jobless Claims increased to 885,000 while analysts expected that they would decline to 800,000. The report highlighted the need for another round of economic stimulus.

Republicans and Democrats continue negotiations, and it looks like they are close to a compromise deal on a $900 billion coronavirus aid package. That said, lawmakers may need more time to work on the details of the new bill, and foreign exchange market traders will continue to follow the story closely.

Australia, whose economy is enjoying a strong rebound thanks to the countrys success in virus containment, may see a setback as its states and territories began imposing border controls after a COVID-19 cluster was detected in Sydney. It remains to be seen whether this development will have any material impact on the Australian dollar.

Technical Analysis

[fx-image src=/2020/12/aud-usd-december-18-2020-1.jpg data-zoom-target=https://responsive.fxempire.com/cdn/n/n/_fxempire_/2020/12/aud-usd-december-18-2020-1.jpg originalWidth=1218 ratio=2.53]

AUD/USD failed to settle above the resistance at 0.7635 and pulled back. Currently, AUD/USD is trying to settle below 0.7600. If this attempt is successful, AUD/USD will get to the test of the support level at 0.7575.

In case AUD/USD declines below the support at 0.7575, it will gain additional downside momentum and head towards the next support level at 0.7535. A move below the support at 0.7535 will open the way to the test of the support at 0.7500.

On the upside, AUD/USD needs to stay above 0.7600 to continue its upside move. The next resistance level for AUD/USD is located at the recent highs at 0.7635. In case AUD/USD settles above this resistance level, it will gain upside momentum and move towards the next resistance level at 0.7655.

RSI remains in the overbought territory but there is some room to gain additional momentum. If AUD/USD settles above 0.7655, it will move towards the next resistance level at 0.7680.

For a look at all of todays economic events, check out our economic calendar.