Today the pair strengthened after the publication of strong labour market data from Australia.
At the same time, in the medium term the pair will remain under pressure amid monetary policy tightening in the US, falling commodities prices, weak GDP growth in Australia, slowing Chinese economy and falling Chinese imports from Australia.
In addition, investors expect further monetary policy easing in Australia.
Tomorrow attention needs to be paid to US data on the Producer Price Index and Retail Sales for November that expected to show an increase in indices. Forecasts realisation will pressure the pair.
Support and resistance
Since the beginning of the month, the pair is trading in the range between the levels of 0.7170 and 0.7350 (ЕМА144 on the daily chart).
An upward correction is limited by resistance levels at 0.7350 (ЕМА144), 0.7500 (ЕМА200 on the daily chart, 23.6% Fibonacci correction).
At the same time, a breakdown of the levels of 0.7215 (ЕМА144, ЕМА200 on the 4-hour chart, ЕМА50 on the daily chart), 0.7170 would resume a downward trend in the pair.
OsMA and Stochastic on the 4-hour and daily charts are turning to sales.
Support levels: 0.7215, 0.7170, 0.7100, 0.7030, 0.6980, 0.6910.
Resistance levels: 0.7300, 0.7350, 0.7400, 0.7500.
Short positions can be opened below the level of 0.7245 with targets at 0.7180, 0.7150, 0.7110, 0.7090 and stop-loss at 0.7270.
Long positions can be opened after the price consolidation above the level of 0.7320 with targets at 0.7385, 0.7410 and stop-loss at 0.7300.