The AUD/USD pair significantly fell on Wednesday and reached the level of 0.7000.
The US Dollar is in demand on the market successfully recovering its losses incurred after the Fed decision to keep interest rates unchanged. At the same time, the regulator is still hoping to start with the policy tightening this year.
Support and resistance
Bollinger Bands on the daily chart remains flat, while the price rage is narrowing. MACD continues moving upwards. Stochastic has reached the oversold zone and is attempting to turn up near the zero mark.
The indicators are not giving clear trading signals.
Support levels: 0.6981 (beginning of the month low), 0.6945 (10 September low), 0.6908 (4 September low).
Resistance levels: 0.7018 (local high), 0.7046, 0.7069, 0.7100, 0.7128, 0.7160 (22 September high), 0.7200, 0.7234, 0.7279 (18 September high), 0.7300.
Short positions can be opened from current levels with targets at 0.6900, 0.6850 and stop-loss at 0.6990. Validity – 2-3 days.
Long positions can be opened after the breakout of the level of 0.7000 with the target at 0.7090 and stop-loss at 0.6970. Validity – 2-3 days.