Despite the USD is strengthening against most of its counterparts, the AUD/USD pair has been trading along a wide upward channel since the beginning of September. The Australian currency is supported by significant investor demand and favorable fundamental data.
Today, amid the lack of important publications from the US and Australia, the pair will be driven by market sentiment.
Support and resistance
In mid-November, the price reached the key support level of 0.7015, rebounded from it and started growing along a narrow upward channel. This week, the price strengthened to the key resistance level of 0.7280 and then corrected down to the lower border of the narrow upward channel 0.7200.
The breakdown of this level leads to a decline towards the lower border of the wide upward channel 0.7085. Otherwise, the price may rebound from the level of 0.7200 and continue growing towards the upper border of the wide upward channel and the resistance level of 0.7400.
According to technical indicators, the pair tends to continue its growth. MACD indicates growing volumes of long positions. The middle MA of Bollinger Bands is in the area of 0.7150-0.7170 and directed upward.
Support levels: 0.7170, 0.7150, 0.7125, 0.7100, 0.7085, 0.7050, 0.7015, 0.6975, 0.6940, 0.6940.
Resistance levels: 0.7200, 0.7245, 0.7280, 0.7330, 0.7350, 0.7400, 0.7500.
Long positions can be opened form the level of 0.7200 with the target at 0.7400 and stop-loss at 0.7130.