Another attempt to settle above the 20 EMA yielded no results, and AUD/USD moved back to the support at 0.7635.
Australian Dollar Pulls Back Against U.S. Dollar
AUD/USD is currently trying to settle back below the support at 0.7635 while the U.S. dollar is mostly flat against a broad basket of currencies.
The U.S. Dollar Index continues its attempts to settle below the support at the 20 EMA at 92.35. If the U.S. Dollar Index manages to settle below this level, it will head towards the next support at 92.15 which will be bullish for AUD/USD.
Today, Australia reported that Services PMI increased from 53.4 in February to 55.5 in March compared to analyst forecast of 56.2. The report was a bit worse than analyst expectations, but Australia’s services segment continued to grow at a healthy pace.
Foreign exchange market traders will also focus on the dynamics of commodity markets. Copper and precious metals are under some pressure, while WTI oil has moved back below the psychologically important $60 level. In case commodity markets move lower, Australian dollar and other commodity-related currencies will find themselves under pressure.
AUD/USD failed to settle above the resistance at the 20 EMA at 0.7660 and declined towards the support at 0.7635. Currently, AUD/USD is trying to settle below this level.
In case this attempt is successful, AUD/USD will move towards the next support at 0.7600. This support level has been tested in recent trading sessions and proved its strength.
If AUD/USD declines below the support at 0.7600, it will head towards the next support level at 0.7575. A successful test of the support at 0.7575 will push AUD/USD towards the next support level which is located at April lows at 0.7535.
On the upside, the nearest resistance level for AUD/USD is still located at the 20 EMA at 0.7660. In case AUD/USD manages to settle above the 20 EMA at 0.7660, it will head towards the next resistance level which is located at the 50 EMA at 0.7685. A move above the 50 EMA will open the way to the test of the resistance at 0.7700.