Current trend
Since the beginning of the week AUD is steady growing against USD, stepping away from 6-month lows, renewed last Friday. It is supported by the growth of correctional moods upon US dollar, which is under the pressure of mixed employment market report, published in the end of the last week.
In addition, investors are waiting for US Fed’s interest rate decision today. Despite the strong confidence of its growth to 1.50%, their attention is focused on the regulator’s head Janet Yellen commentaries and next few years forecasts.
Today AUD was supported by Westpac Consumer Confidence release, which grew by 3.6% MoM in December after fall by 1.7% MoM in the previous month.
Support and resistance
On the daily chart, Bollinger Bands are reversing into flat. The price range is shrinking from above, reflecting quite rapid change of the trend in the short term. It is better to use channel-trading strategy and open positions within the upward dynamics. MACD is growing, keeping moderate buy signal (the histogram is above the signal line). It is better to keep current long positions and open new ones in the short and very short term.
Stochastic’s dynamics is the same; it is stepping out of its lows, which reflects the possibility of upward trend development in the short term.
Resistance levels: 0.7586, 0.7606, 0.7625, 0.7637.
Support levels: 0.7566, 0.7546, 0.7530, 0.7500.
Trading tips
Long positions can be opened after breakout of the level 0.7586 with the targets at 0.7625–0.7637 and stop loss at 0.7566–0.7550. Implementation period: 2–3 days.
Short correctional positions can be opened after rebound at the level of 0.7586 with the targets at 0.7545–0.7530 and stop loss at 0.7615. Implementation period: 2–3 days.