On Wednesday, the AUD/USD pair was trading mixed and ended the day near the opening level and a local high. The American currency managed to gain support from macroeconomic statistics, released in the US.
Durable Goods Orders remained unchanged in November while analysts expected a 0.7% decline. However, Durable Goods Orders ex Transportation for November came in at -0.1%, below the forecast of 0.1%. Personal Consumption Expenditures Price Index for November grew to 0.4% from 0.2% while December’s Consumer Sentiment Index was up to 92.6 from 91.8 points.
Support and resistance
Bollinger Bands indicator on the daily chart is directed horizontally while the price range is narrowing down. MACD is growing and keeping a buy signal. Stochastic is approaching the overbought zone, limiting the growth in the pair.
Support levels: 0.7234, 0.7200, 0.7183 (21 December level), 0.7158, 0.7128, 0.7100 (near 17 December low), 0.7068.
Resistance levels: 0.7259 (24 December morning session high), 0.7282, 0.7300, 0.7334 (10 December high), 0.7353, 0.7384 (4 December high), 0.7400.
Long positions can be opened at the current level with the target 0.7340 at and stop-loss at 0.7210. Validity – 2-4 days.
The pair is unlikely to turn down, but a short-term correction is possible. Short positions can be opened from the level of 0.7272 with the target at 0.7240 and stop-loss at 0.7300. Validity – 1-2 days.