The Australian Dollar remains under pressure amid continuous fall of the Chinese stocks markets. In addition, statistics on industrial activity came out on Tuesday that showed industrial profits of the biggest companies in China for 8 months of the year have fallen.
Today, however, the pair is recovering some of its losses despite poor macroeconomic statistics from Australia. The number of Building Permits in August fell by 6.9%, against forecasted -2.0%.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally, while the price range is slowly widening. The indicator accepts some correctional growth in the pair as the price touched the lower border of the range yesterday. MACD is turning up and forming a buy signal. Stochastic has left the oversold zone and growing.
The indicators recommend long positions.
Support levels: 0.6981, 0.6945 (24 and 29 September lows), 0.6908 (4 September low).
Resistance levels: 0.7018 (local high), 0.7042 (25 September high), 0.7069, 0.7100, 0.7128, 0.7160, 0.7200, 0.7234, 0.7279 (18 September high), 0.7300.
Long positions can be opened from current prices with the target at 0.7070 and stop-loss at 0.6980. Validity – 1-2 days.
Pending sell orders can be placed at the level of 0.7042 with the target at 0.6950 and stop-loss at 0.7080. Validity – 2-4 days.