Yesterday the pair continued growing amid some weakness in the American currency and due to a strengthening in the Australian Dollar, which was supported by positive macroeconomic statistics from Australia. Against the previous month, New Motor Vehicle Sales in September increased by 2.5% while on a year-to-year basis their growth amounted to 0.8%.
In addition, the pair was substantially supported by the publication of the RBA Meeting Minutes. In the Minutes, the regulator noted that current economic conditions match their September forecasts and complained about the strength of the national currency, which is negatively affecting the economic growth of the country.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally while the price range is widening. MACD is growing and giving a quite strong buy signal. Stochastic is in the overbought zone, trying to turn down.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.7655 (local low), 0.7638, 0.7615, 0.7600, 0.7580 (17 October low), 0.7560, 0.7533, 0.7516, 0.7500 (19 September low).
Resistance levels: 0.7674 (local high), 0.7690 (4 October high), 0.7709 (29 September high), 0.7731 (8 September high).
Trading tips
Long positions can be opened after the breakout of the level of 0.7700 (with the appropriate indicators signals) with targets at 0.7750, 0.7820 and stop-loss at 0.7665. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 0.7620 with targets at 0.7540, 0.7500 and stop-loss at 0.7660. Validity – 2-3 days.
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