AUD/USD Video 15.01.21.
U.S. Dollar Moves Higher Against Australian Dollar
AUD/USD did not manage to settle above the resistance at 0.7760 and is pulling back while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index is currently trying to get to the test of the nearest resistance level at 90.50. If the U.S. Dollar Index manages to get above this level, it will move towards the next resistance at 90.70 which will be bearish for AUD/USD.
U.S. President-elect Joe Biden presented his $1.9 trillion stimulus plan on Thursday. Interestingly, the major stimulus plan did not provide any support to commodity-related currencies.
Today, foreign exchange market traders will focus on the economic data from the U.S. Analysts expect that Retail Sales remained unchanged on a month-over-month basis in December. It should be noted that a negative surprise is possible given the recent developments in the job market.
The latest Initial Jobless Claims report indicated that 965,000 Americans filed for unemployment benefits in a week as the second wave of the virus has started to put significant pressure on the economy.
However, the economy will soon get support from the new stimulus plan, and it remains to be seen whether safe-haven assets like the U.S. dollar will remain in demand in such circumstances.
AUD/USD failed to settle above the resistance at 0.7760 and is currently trying to get below the nearest support level at 0.7740. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum.
In case AUD/USD manages to settle below the support at 0.7740, it will head towards the next support level at 0.7725. A successful test of this level will push AUD/USD towards the next support at the 20 EMA at 0.7700.
On the upside, the nearest resistance level for AUD/USD is located at 0.7760. If AUD/USD settles above this level, it will head towards the resistance at 0.7780. This resistance level has already been tested during the current trading session and proved its strength. A move above 0.7780 will open the way to the test of the resistance at 0.7800.
For a look at all of today’s economic events, check out our economic calendar.