Since the middle of last month, the pair is in the upward correction.
The pair was supported by strong macroeconomic statistics from Australia and the weakening US Dollar. Last week, the AUD was supported by strong data on Job Advertisements, Business Confidence and Consumer Confidence, while Monday’s data on New Motor Vehicle Sales for January exceeded forecasts by more than twice.
At the same time, in the end of last week the US Dollar was supported by strong data on Retail Sales for January.
Support and resistance
In the nearest term, the pair is expected to enter a sideways range and resume its fall after that.
Technical indicators suggest a price consolidation. MACD histogram is in the positive zone and its volumes are falling. Bollinger Bands are moving horizontally.
Support levels: 0.7120, 0.7085, 0.7055, 0.7050, 0.7040, 0.7000, 0.6980, 0.6955.
Resistance levels: 0.7135, 0.7150, 0.7175, 0.7210, 0.7240, 0.7300.
Short positions can be opened from current levels with targets at 0.7000, 0.6955 and stop-loss at 0.7205