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