AUD/USD Daily Forecast – Australian Dollar Tries To Rebound

AUD/USD gained upside momentum after yesterday’s pullback.
Australian Dollar Tries To Move Higher After Yesterday’s Sell-Off
AUD/USD is trying to settle back above 0.7760 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index is currently trying to get above the nearest resistance level at the 50 EMA at 90.75. A move above this level will open the way to the test of the next resistance level at 90.90 which will be bearish for AUD/USD.

Today, foreign exchange market traders will focus on the economic data from the U.S. Analysts expect that U.S. Retail Sales increased by 1.1% month-over-month in January after falling by 0.7% in February. U.S. Industrial Production is projected to grow by 0.5% month-over-month in January while Manufacturing Production is expected to increase by 0.7%.

Traders will also monitor the developments in the U.S. government bond market. The yield of 10-year Treasuries increased from 1.15% to 1.31% in several trading sessions while the yield of 30-year Treasuries rallied from 1.95% to 2.09%. If yields continue to rise, the U.S. dollar may get additional support.
AUD/USD is currently trying to settle above the nearest resistance level at 0.7760. If this attempt is successful, it will head towards the next resistance which is located at 0.7780. In case AUD/USD manages to settle above 0.7780, it will get to the test of the next resistance which is located at the recent highs at 0.7800.

On the support side, a move below 0.7760 will push AUD/USD towards the next support at 0.7740. The next support level is located at 0.7725. If AUD/USD declines below this level, it will get to the test of the 20 EMA at 0.7715. In case AUD/USD settles below the 20 EMA, it will head towards the support at 0.7700.

From a big picture point of view, AUD/USD needs to settle above 0.7800 in order to gain additional momentum and continue its upside move. On the support side, a move below the 20 EMA will be a worrisome development for the bulls.