AUD/USD Daily Forecast – Australian Dollar Remains Under Pressure
AUD/USD Video 26.02.21.
Australian Dollar Is Losing Ground Against U.S. Dollar
AUD/USD continues to pull back while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index managed to settle above the resistance at 90.30 and made an attempt to settle above the next resistance at 90.50 but did not manage to develop sufficient upside momentum. As a result, the U.S. Dollar Index remains in the range between 90.30 and 90.50. In case the U.S. Dollar index gets above 90.50, it will move towards the 50 EMA at 90.65 which will be bearish for AUD/USD.
Today, foreign exchange market traders will focus on Personal Income and Personal Spending reports from the U.S. Analysts expect that Personal Income increased by 9.5% month-over-month in January after growing by 0.6% in December. Personal Spending is projected to grow by 2.5% in January after declining by 0.2% in December.
The current pullback in commodity markets puts additional pressure on commodity-related currencies, including Australian dollar. If this pullback continues, Australian dollar will likely move lower.
Technical Analysis
AUD/USD gained downside momentum and managed to get below the support at 0.7860. AUD/USD has recently made an attempt to settle below the next support level at 0.7820 but failed to move lower and remained in the range between 0.7820 and 0.7860.
In case AUD/USD declines below the support at 0.7820, it will get to another test of the next support level at the 20 EMA at 0.7805. A successful test of this level will push AUD/USD towards the next support level at 0.7780. If AUD/USD settles below the support at 0.7780, it will head towards the next support which is located at 0.7760.
On the upside, the nearest resistance level for AUD/USD is located at 0.7860. If AUD/USD gets above this level, it will head towards the next resistance at 0.7875. RSI has moved back into the moderate territory, and there is plenty of room to gain upside momentum in case the right catalysts emerge. A move above the resistance at 0.7875 will open the way to the test of the resistance at 0.7890.
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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