Yesterday Australian dollar was moderately falling against US one, developing the downward trend, which has formed in the end of the last trading week.
USD is supported by the correctional moods in the market. In addition, investors are inspired by the growth of the US bonds’ yield and Fed’s optimistic commentaries, which support the growth of the interest rate in December.
Today the dynamics is the same, as the market is waiting for the large block of US macroeconomical data publication. Q3 Gross Domestic Product Annualized and Personal Consumption Expenditures Prices release are due at 15:30 (GMT+2). Fed’s Yellen testifies publication is expected at 17:00 (GMT+2). Fed’s Beige Book will be released at 21:00 (GMT+2).
Support and resistance
On the daily chart Bollinger Bands are falling. The price range is narrowing, reflecting that the recent dynamics is unsure. However, the indicator don’t contradict with the downward trend development, so opened short positions can be kept for a while.
MACD is trying to reverse downwards, keeping buy signal (the histogram is above the signal line).It’s better to wait until the situation is clear.
Stochastic reacts to the formed trend actively and is now going down. New short positions can be opened in the short or very short term.
Resistance levels: 0.7606, 0.7637, 0.7664, 0.7700.
Support levels: 0.7586, 0.7566, 0.7530.
Long positions can be opened after the rebound at the level of 0.7586 with the targets at 0.7637–0.7663 and stop loss at 0.7550. Implementation period: 2-3 days.
The steady breakdown of the levels of 0.7586 or 0.7566 will become a signal of downward trend with the targets at 0.7530–0.7500 developing. Stop loss is 0.7600. Implementation period: 2-3 days.