The pair significantly fell after the publication of Wednesday’s data on inflation in Australia. The Consumer Price Index for this first quarter of the year grew by 1.3% while economists predicted a growth of 1.8%. Against the previous quarter, the index fell by 0.2% instead of a forecasted growth of 0.3%.
At the same time, the US dollar remained under pressure prior to the Fed Interest Rate Decision. According to forecasts, monetary policy will stay unchanged.
Bollinger Bands® on the daily chart is turning horizontally while the price range is narrowing. MACD is falling and giving a strong sell signal. Stochastic is falling as well having approached the border of the oversold zone.
The indicators recommend waiting for clearer trading signals.
- Support levels: 0.7618 (14 April low), 0.7593, 0.7567, 0.7533, 0.7500 (7 April low), 0.7476 (24 March low).
- Resistance levels: 0.7679 (local high), 0.7715, 0.7736, 0.7764 (local high), 0.7800, 0.7834 (21 April high).