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AUD/USD Daily Forecast – Test Of Resistance At 0.7150

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AUD/USD Video 28.10.20.

Australian Dollar Tries To Gain Additional Upside Momentum

AUD/USD continues its attempts to settle above the resistance at 0.7150 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has managed to get above the resistance at 93 and is trying to get to the test of the next resistance level at 93.25. If this attempt is successful, AUD/USD may find itself under some pressure.

Today, Australia reported that its third-quarter Inflation Rate was 1.6% quarter-over-quarter compared to analyst consensus of 1.5%. On a year-over-year basis, Australia’s third-quarter Inflation Rate was 0.7%, in line with the analyst consensus. Prices showed strength as Australia has mostly succeeded in its battle against coronavirus.

U.S. President Donald Trump has recently stated that he expected a new stimulus deal after the election. Hopes for a new round of stimulus have been fading in recent days, and markets showed little reaction to Trump’s statement.

At this point, traders are focused on the upcoming U.S. presidential election and the continued problems on the virus front in Europe but they will also pay attention to U.S. employment data which will be published on Thursday.

Analysts expect that Initial Jobless Claims will decline to 775,000 while Continuing Jobless Claims will decline to 7.7 million.

Technical Analysis

AUD/USD is currently trying to settle above the nearest resistance level at 0.7150. If this attempt is successful, AUD/USD will gain additional upside momentum and head towards the next resistance level at 0.7180.

A move above the resistance at 0.7180 will open the way to the test of the next resistance at 0.7210.

On the support side, the previous resistance at the 20 EMA at 0.7130 will likely serve as the first support level for AUD/USD. If AUD/USD settles below this level, it will gain downside momentum and head towards the next support at 0.7100. A move below the support at 0.7100 will push AUD/USD towards the next support level at 0.7075.

From a big picture point of view, AUD/USD is currently trading in a range between 0.7100 and 0.7150, and it will likely need additional catalysts to get out of this range.

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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