AUD/USD managed to settle above 0.7360 and is testing the nearest resistance level at 0.7380.
Australian Dollar Remains Strong Ahead Of The Weekend
AUD/USD is testing the nearest resistance level at 0.7380 as the U.S. dollar continues to lose ground against a broad basket of currencies.
The U.S. dollar remains under material pressure on the foreign exchange market. Yesterday, the U.S. Dollar Index tried to get to the test of the nearest support level at 91.75 but did not manage to develop sufficient downside momentum in thin holiday trading.
Today, the U.S. Dollar Index has managed to settle below the 92 and is moving lower. It remains to be seen whether the U.S. Dollar Index will be able to get to the test of the yearly lows at 91.75 as trading activity remains muted. If the U.S. Dollar Index gets below the support at 91.75, AUD/USD will have a good chance to settle above 0.7400.
There are no important economic reports scheduled to be released in the U.S. and Australia today so traders will focus on general market sentiment. On Monday, Australia is set to report that third-quarter Business Inventories decreased by 0.7% quarter-over-quarter while U.S. is projected to report that Pending Home Sales decreased by 1% month-over-month In October.
AUD/USD managed to stay above the nearest support level at 0.7360 and is testing the nearest resistance level at 0.7380. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
If AUD/USD settles above the resistance at 0.7380, it will get to the test of the next resistance level at 0.7400. A successful test of the resistance at 0.7400 will open the way to the test of the next resistance level at 0.7415.
On the support side, the nearest support for AUD/USD is located at 0.7360. This support level has already been tested several times and proved its strength. If AUD/USD declines below this support level, it will head towards the next support at 0.7340. A move below the support at 0.7340 will push AUD/USD towards the support at 0.7325.