During the Asian session on Wednesday, the AUD/USD pair was under pressure from weaker-than-expected figures, released in Australia.
Falling commodity prices, a decline in exports to China reduce Australia’s export , thus, adding pressure on the county’s budget.
If the Fed decides to keep interest rates unchanged today, the RBA, in its turn, may face the necessity to lower its interest rates at the forthcoming meeting. Lower exchange rate of the national currency would allow the Regulator to support the economy, accelerate the and draw up the budget.
Support and resistance
The AUD/USD pair has declined back to the closing levels of August. On the weekly chart, the price is trading within a with the lower border below the level of 0.6800.
The breakdown of the lower border 0.7070 of an upward channel on the may lead to a decline towards year lows at the level of 0.6900.
OsMA and indicators on the 4-hour and recommend short positions. On the weekly chart, the indicators are starting giving sell signals as well.
The pair may grow to the levels of 0.7380 (October highs), 0.7430 (EMA144 on the ), 0.7500 (23.6% Fibonacci) only after the consolidation above 0.7210 (EMA50 on the ).
Support levels: 0.7100, 0.7070, 0.6960, 0.6910.
Resistance levels: 0.7210, 0.7380, 0.7400, 0.7430.
Place pending Sell Stop orders at the level of 0.7105 or Sell Limit orders at 0.7190 with targets at 0.7070, 0.7010, 0.6960, 0.6910 and stop-loss at 0.7230.
Otherwise, place pending Buy Stop Orders at the level of 0.7250 with targets at 0.7290, 0.7380, 0.7430 and stop-loss at 0.7190.
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