At today’s meeting, RBA Governor Glenn Stevens pointed out to improvements in employment in Australia and the general state of the economy outside of the mining industry.
Nevertheless, amid falling investment in mining companies, slowing rates, reduction in exports to China and slowdown of the export oriented Australian economy further interest rates cuts seems to be the likeliest scenario.
Today attention needs to be paid to the US data on the GDP, Personal Consumption Expenditures Prices, Consumer Confidence and Richmond Fed Manufacturing Index. Positive data will weaken the pair.
Support and resistance
The pair broke out the at 0.7150 (EMA200 on the 4-hour chart, EMA50 on the ) and continues its correctional growth towards 0.7370 (EMA144 on the ), 0.7500 (23.6% correction, upper border of an , EMA200 on the ).
At the same time, a breakdown of the level of 0.7030 (November lows and bottom border of the ) would resume a downward trend towards 0.6950, 0.6910 (year lows).
OsMA and on the 4-hour and recommend long positions.
Support levels: 0.7150, 0.7100, 0.7030, 0.6950, 0.6910.
Resistance levels: 0.7250, 0.7325, 0.7370, 0.7500.
Pending sell orders can be placed at the level of 0.7190 with targets at 0.7110, 0.7090, 0.7030, 0.6950, 0.6910 and stop-loss at 0.7220.
Pending buy orders can be placed at the level of 0.7240 with targets at 0.7290, 0.7300, 0.7370 and stop-loss at 0.7190.