AUD/USD Video 19.01.21.
Australian Dollar Gains Ground Against U.S. Dollar
AUD/USD is moving towards the resistance level at 0.7725 while the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index managed to get below the support level at 90.70 and is moving towards the next support at 90.50. A move below the support at 90.50 will push the U.S. Dollar Index towards the next support level at the 20 EMA at 90.35 which will be bullish for AUD/USD.
Today, Australia reported that New Home Sales increased by as much as 26.2% month-over-month in December. Australia’s New Home Sales have started to grow in June 2020 when the country’s economy began to recover from the blow dealt by the coronavirus pandemic.
Various stimulus measures in combination with the country’s success in virus containment managed to halt a multi-year decline in New Home Sales and pushed them to multi-year highs.
AUD/USD managed to get above the resistance at 0.7700 and is moving towards the next resistance level at 0.7725. From a big picture point of view, AUD/USD failed to settle below the 20 EMA near 0.7690 so it has good chances to get back to the upside mode.
RSI declined from the highs that were reached at the beginning of this year, and there is plenty of room to gain upside momentum in case the right catalysts emerge.
If AUD/USD settles above the resistance at 0.7725, it will move towards the next resistance level at 0.7740. A successful test of the resistance at 0.7740 will push AUD/USD towards the resistance at 0.7760. In case AUD/USD manages to settle above the resistance level at 0.7760, it will head towards the resistance at 0.7780.
On the support side, AUD/USD needs to settle below the 20 EMA near 0.7690 to have a chance to gain downside momentum. If AUD/USD declines below this level, it will head towards the support at 0.7675.
A move below this level will push AUD/USD towards the next support level which has emerged at 0.7660. In case AUD/USD declines below 0.7660, it will head towards the next support level at 0.7635.
For a look at all of today’s economic events, check out our economic calendar.