Last week the AUD continued falling against the USD and the pair reached its 6-year lows.
The Reserve Bank of Australia left the interest rate unchanged at its current 2%, while the head of the RBA Glenn Stevens maintained the regulator is going to continue with its soft monetary policy.
On Wednesday, poor macroeconomic data came out in Australia that determined the fall in the pair for the rest of the week. The GDP growth for the second quarter of the year showed a mere 0.2%, while forecasts predicted a 0.4% growth. The yearly growth fell from 2.5% to 2.0% (forecasted 2.2%).
Support and resistance
Bollinger Bands on the daily chart is falling. However, the indicator formed a buy signal as the price has left its range. MACD is also falling. Stochastic has reached the oversold zone but is not attempting to turn up yet.
The indicators recommend waiting for a clearer trading signal.
Support levels: 0.6908 (4 September low), 0.6850, 0.6800, 0.6770.
Resistance levels: 0.6947 (local high), 0.6981, 0.7046, 0.7069 (3 September highs), 0.7100, 0.7128, 0.7160, 0.7200 (28 August high), 0.7234.
Long positions can be opened after the price rebound from the level of 0.6908 (with the appropriate indicators signals) with targets at 0.7000, 0.7100 and stop-loss at 0.6850.
Short positions can be opened after the breakdown of the levels of 0.6900, 0.6850 with targets at 0.6800, 0.6750 and stop-loss at 0.7000.