AUD/USD Daily Forecast – Test Of Resistance At 0.7130
AUD / USD video 10/23/20.
The Australian dollar continues to rise against the US dollar
AUD / USD is currently attempting to stabilize above the next resistance level of 0.7130 as the US dollar loses upside momentum against a broad basket of currencies.
The US dollar index tried to stabilize above the resistance at 93.00 but did not gain any additional upward momentum and fell closer to the nearest support at 92.80. If the US dollar index breaks below the support at 92.80 it will gain bearish momentum, which will be bullish for AUD / USD.
Australia today reported Flash PMI data for October. The Australian manufacturing purchasing managers' index declined from 55.4 in September to 54.2 in October, compared to the analyst forecast of 55.6. The PMI for services rose from 50.8 to 53.8, compared to the analyst forecast of 51.
Most likely, the strength of the Australian services segment could be due to the country's success in containing coronavirus, while the slower pace of manufacturing recovery is due to problems with the virus in other parts of the world.
Today, AUD / USD traders also have the option to view the latest US PMI data. The US manufacturing PMI is expected to increase from 53.2 in September to 53.4 in October, while the services PMI is expected to remain unchanged at 54.6.
AUD / USD gained momentum trying to stabilize above resistance at 0.7130. The next resistance for AUD / USD is near the 50 EMA at 0.7150.
If AUD / USD manages to stabilize above 50 EMA, it will gain additional upward momentum and approach the resistance at 0.7180. Movement above 0.7180 will push AUD / USD towards resistance at 0.7210.
On the support side, the next support level for AUD / USD is 0.7100. If the AUD / USD breaks below this level, it will gain bearish momentum and move towards the next support level at 0.7075.
From a bigger picture perspective, 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 break above 0.7200.
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This article was originally published on FX Empire
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