AUD/USD Daily Forecast – Test Of Resistance At 0.7130
AUD/USD Video 23.10.20.
Australian Dollar Continues To Move Higher Against U.S. Dollar
AUD/USD is currently trying to settle above the nearest resistance level at 0.7130 as the U.S. dollar is losing its upside momentum against a broad basket of currencies.
The U.S. Dollar Index made an attempt to settle above the resistance at 93.00 but failed to gain additional upside momentum and declined closer to the nearest support at 92.80. If the U.S. Dollar Index moves below the support at 92.80, it will gain downside momentum which will be bullish for AUD/USD.
Today, Australia reported flash PMI data for October. Australia’s Manufacturing PMI decreased from 55.4 in September to 54.2 in October compared to analyst forecast of 55.6. Meanwhile, Services PMI increased from 50.8 to 53.8 compared to analyst forecast of 51.
Most likely, the strength of Australia’s services segment could be attributed to the country’s success in containing coronavirus while the slower pace of manufacturing sector rebound is due to problems with the virus elsewhere in the world.
Today, AUD/USD traders will also have a chance to take a look at the latest U.S. PMI data. U.S. Manufacturing PMI is projected to increase from 53.2 in September to 53.4 in October while Services PMI is expected to remain unchanged at 54.6.
AUD/USD gained upside momentum and is trying to settle above the resistance at 0.7130. The next resistance for AUD/USD is located near the 50 EMA at 0.7150.
In case AUD/USD manages to settle above the 50 EMA, it will gain additional upside momentum and head towards the resistance at 0.7180. A move above 0.7180 will push AUD/USD towards the resistance at 0.7210.
On the support side, the nearest support level for AUD/USD is located at 0.7100. If AUD/USD declines below this level, it will gain downside momentum and head towards the next support level at 0.7075.
From a big picture point of view, AUD/USD managed to find support below 0.7100 and is trying to rebound towards the resistance area above 0.7200. Most likely, AUD/USD will need strong catalysts to settle above 0.7200.
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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