AUD/USD Daily Forecast – Australian Dollar Continues To Rebound Against U.S. Dollar

AUD/USD gained upside momentum and is trying to settle above the resistance at 0.7740 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle below the nearest support level at the 20 EMA at 90.35. If this attempt is successful, the U.S. Dollar Index will move towards the psychologically important 90 level which will be bullish for AUD/USD.

Today, Australia reported that Consumer Confidence declined from 112 in December to 107 in January. Australia‘s economy enjoyed a significant rebound thanks to the country’s success in virus containment and the economic strength of its main trading partner, China, so it remains to be seen whether the recent decline of Consumer Confidence is a start of a new downside trend.

Tomorrow, foreign exchange market traders will focus on employment reports from Australia. Employment Change report is expected to show that employment increased by 50,000 in December, while Unemployment Rate is projected to decline from 6.8% to 6.7%.

Technical Analysis

AUD/USD managed to get above the resistance at 0.7725 and is trying to settle above the next resistance level at 0.7740. If this attempt is successful, AUD/USD will move towards the next resistance level which is located at 0.7760.

In case AUD/USD gets above the resistance at 0.7760, it will head towards the resistance at 0.7780. A move above this level will open the way to the test of the resistance at 0.7800.

On the support side, a move below 0.7725 will push AUD/USD towards the next support level at the 20 EMA at 0.7700. In case AUD/USD declines below this level, it will head towards the next support level at 0.7675. A successful test of this level will open the way to the test of the support at 0.7660.