AUD/USD Daily Forecast – U.S. Dollar Tries To Move Higher Against Australian Dollar

Vladimir Zernov
·2 min read

AUD/USD Video 30.10.20.

Australian Dollar Remains Under Pressure

AUD/USD continues its attempts to settle below the support at 0.7030 while the U.S. dollar remains mostly flat against a broad basket of currencies after yesterday’s major upside move.

Yesterday, U.S. reported that its third-quarter GDP increased by 33.1% quarter-over-quarter after falling by 31.4% in the second quarter. The new employment reports were also encouraging as they indicated that Initial Jobless Claims and Continuing Jobless Claims continued to decline.

However, Pending Home Sales declined by 2.2% month-over-month in September compared to analyst consensus which called for growth of 3.4%, suggesting that the strong recovery in the housing segment may have stalled.

Today, the U.S. will provide Personal Income and Personal Spending reports for September. Personal Income is projected to increase by 0.4% month-over-month while Personal Spending is expected to grow by 1%.

The Personal Spending report is especially interesting since it will show whether consumers remained confident enough to spend money at a time when U.S. lawmakers tried to negotiate a new coronavirus aid package.

Technical Analysis

AUD/USD is currently trying to settle below the support level at 0.7030. Yesterday, AUD/USD managed to get below this level but received material support near 0.7000 and rebounded closer to 0.7030.

If AUD/USD settles below 0.7030, it will get to another test of the significant support level near 0.7000.

A move below the support at 0.7000 will open the way to the test of the next support level at 0.6975. If AUD/USD declines below 0.6975, it will move towards the next support level at 0.6925. There are no important levels between 0.6925 and 0.6975 so this move may be fast.

On the upside, the nearest resistance for AUD/USD is located at 0.7075. This resistance level has been tested during the previous trading session and proved its strength.

In case AUD/USD manages to settle above this level, it will gain upside momentum and head towards the next resistance level near the 20 EMA at 0.7100. A move above the 20 EMA will signal that the attempt to establish a new downside trend has failed, and AUD/USD remains range-bound.

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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