On Tuesday the AUD/USD pair strengthened to its new local high being supported by results of the RBA meeting.
RBA’s assessment of economic prospects was quite optimistic, and interest rates were left unchanged at 1.75%. The Regulator believes that the current would be consistent with sustainable growth in the economy. However, in Australia is expected to remain quite low for some time, but some signs of improvement are seen here as well.
The US Dollar , in its turn, is still under pressure from weak US labour market data and due to uncertainty regarding Fed’s tightening of in the coming months.
Support and resistance
on the is showing a strong growth while the price range is widening actively. However, the price remains above the upper MA that indicates a downward correction possibility. is growing and keeping a buy signal. has reached its highs in the overbought zoned and turned horizontally.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.7426, 0.7400, 0.7369 (7 June level), 0.7327, 0.7300, 0.7259, 0.7200 (near 2 June low), 0.7144 (24 May low).
Resistance levels: 0.7463 (7 June high), 0.7500 (5 May level), 0.7533, 0.7567, 0.7593, 0.7618 (3 May level).
Long positions can be opened after the levels of 0.7463 and 0.7500 are broken out with targets at 0.7567, 0.7593, 0.7618 and stop-loss at 0.7426, 0.7400. Validity – 2-4 days.
Short positions can be opened after the levels of 0.7426, 0.7400 are broken down with the target at 0.7200 and stop-loss at 0.7463. Validity – 2-3 days.