As this trading week is coming to an end, the Australian dollar is hitting new record lows. The demand for the US dollar is high as the interest rate increase is approaching. Positive US macroeconomic statistics supports the American currency as well.
On Thursday, Australia released very weak Export Price Index (-4.4% in Q2 vs. -0.8% in Q1). Building Permits statistics was also disappointing (-8.2% in June vs. 2.3% in previous month). On Friday, Producer Price Index came out at 0.3% against 0.5% earlier; Business Confidence fell by 15.3 points from the previous value of -2.3.
Support and resistance
Bollinger Bands on the daily chart continue declining. The price range is narrowing down, reflecting recent high volatility. A correctional growth is possible.
MACD is growing. The histogram is above its signal line and has formed a buy signal. Short-term and very short-term buy orders are relevant.
Having started moving up, Stochastic has already turned into sideways. Wait for clearer signals.
Support levels: 0.7252 (current local low) и 0.7200 (last time hit in April 2009).
Resistance levels: 0.7300 (the nearest level), 0.7327, 0.7370, 0.7400, 0.7448 (21 July local high), 0.7500.
When the price breaks through 0.7300 and bounces off this support, open long positions with take-profit at 0.7370-0.7400 and stop-loss at 0.7252.
The rebound from 0.7300 or the breakdown of 0.7252 may be a signal to open short positions with take-profit at 0.7200 or lower and stop-loss at 0.7370-0.7327.