AUD / USD Video 08.04.21.
Another test of resistance at 0.7635
AUD / USD is currently trying to get back above the 0.7635 resistance, while the US dollar is losing ground against a broad basket of currencies.
The US dollar index dipped below the 20-day moving average support at 92.35, but failed to develop further downside momentum. If the US Dollar Index manages to get back above the 20-day EMA, it will head towards resistance at 92.50, which will be bearish for AUD / USD.
Forex traders will be focusing on employment reports from US analysts today. Analysts expect the initial jobless claims report to show that 680,000 Americans filed for jobless claims in the week. The number of ongoing jobless claims is projected to decline from 3.79 million to 3.65 million.
It should be noted that Treasury yields continue to decline, which is bearish for the US dollar. The 10-year Treasury yield is currently at 1.65%, with the nearest significant support at the 20-day moving average of 1.64%. A move below the 20-day moving average will signal that yields are poised to continue pulling back, which could put more pressure on the US currency.
AUD / USD failed to consolidate below the 0.7600 support and is trying to get back above the 0.7635 resistance. If this attempt is successful, AUD / USD will head towards resistance, which is located at the 20-day moving average at 0.7655.
A successful test of the resistance on the 20-day moving average at 0.7655 will open the way to test the resistance on the 50-day moving average at 0.7685. If AUD / USD manages to gain a foothold above the 50-EMA, it will move to the next resistance level at 0.7700.
In terms of support, the closest support level for AUD / USD is at 0.7600. This support level has been repeatedly tested in recent trading sessions and it looks like AUD / USD will need additional catalysts to consolidate below 0.7600.
If AUD / USD falls below this level, it will move towards support at 0.7575. A move below this level would push AUD / USD towards the next support at 0.7535.
For all of today’s economic events, check out our economic calendar.