Current trend

During all last week the AUD/USD pair was falling.

The pair was pressured by poor macroeconomic statistics from Australia and growing demand for the USD. The Consumer Price Index in Australia fell to 2.1% against forecasted 2.4%. At the same time, the US Dollar was supported by the Interest Rate Decision from the US Fed as the regulator decided not to increase the interest rate in October but made it clear the increase could happen at its next meeting in December.

Today attention needs to be paid to Construction Spending, ISM and Markit Manufacturing PMI’s from the US, as well as the RBA Interest Rate Decision and its Rate Statement.

Support and resistance

Last Thursday the price reached the lower border of an ascending channel, near the key support level at 0.7000 and corrected upwards after, which could be the start of a new ascending wave.

On the daily chart the price bounced off the bottom MA of Bollinger Bands and rising towards the levels of 0.7220 (middle MA of Bollinger Bands), 0.7375 (upper MA of Bollinger Bands).

Support levels: 0.7125, 0.7100, 0.7070, 0.7050, 0.7015, 0.6975.

Resistance levels: 0.7150, 0.7170, 0.7200, 0.7245, 0.7280, 0.7305, 0.7350, 07400, 0.7440.

Trading tips

Long positions can be opened from current prices with the target at 0.7375 and stop-loss at 0.7040.

AUD/USD: pair in upward wave

The material published on this page is produced by LiteForex and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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