DAILY NOTION - FXEMPIRE - AUD/USD Forecast - Nov 4, 2020

AUD/USD is trying to move below the support level at 0.7075.

The U.S. Dollar Index continues its attempts to settle above the resistance at the 94 level as Donald Trump’s chances to win the U.S. presidential election are looking better than previously expected. In addition, the odds of a contested election are also rising, providing support to the American currency.

If the U.S. Dollar Index settles above 94 and moves towards the next resistance at 94.30, AUD/USD will find itself under additional pressure.

Today, Australia reported that Retail Sales decreased by 1.1% month-over-month in September compared to analyst consensus which called for a decline of 1.5%.

Meanwhile, Australia’s Services PMI increased from 50.8 in September to 53.7 in October. In the U.S., Services PMI is projected to grow from 54.6 to 56. Numbers above 50 show expansion.

What's Next?

In case AUD/USD declines below the support at 0.7030, it will get to the test of the recent lows near 0.7000. A move below the support at 0.7000 will be a major win for AUD/USD bears as it will signal that AUD/USD is ready to continue its downside move.

On the upside, AUD/USD needs to stay above the support at 0.7075 to have a chance to gain more upside momentum. In this case, it will head towards the resistance at the 20 EMA at 0.7100.

If AUD/USD manages to settle above the 20 EMA, it will head towards the next resistance level at the 50 EMA at 0.7130. A move above the 50 EMA will push AUD/USD towards the next resistance level at 0.7160.

Original analysis: https://www.fxempire.com/forec...