Today, amid negative GDP statistics in Australia, the AUD/USD pair lost almost 50 points. In the second quarter, the country's economy grew by only 0.2%, while a 0.4% gain had been expected.
Tomorrow, Trade Balance and Retail Sales data for July is released in Australia. Weak economic growth in the country and strong US statistics, due this week as well, may push the pair further down.
Support and resistance
Being affected by fundamental factors, the pair broke down the important support level of 0.7200 and, currently, is declining towards 0.6000 (2008 year lows).
OsMA and Stochastic indicators on the 4-hour, daily, weekly and monthly charts recommend short positions.
Nevertheless, in case of negative US statistics or a growth of commodity prices, corrections to the levels of 0.7100, 0.7150, 0.7200, 0.7250 may follow.
Support levels: 0.7000, 0.6980.
Resistance levels: 0.7065, 0.7100, 0.7150, 0.7200.
Open short positions from the current price or from the levels of 0.7060, 0.7090, 0.7140 with targets at 0.6980, 0.6910, 0.6850 and stop-loss at 0.7180.
Open long positions after the consolidation above the level of 0.7300 with the target at 0.7600.