In the end of last week, the pair substantially declined amid some strengthening in the US Dollar , which was supported by strong data on the US labour market. The number of Initial Jobless Claims fell to 264 thousands, while economists predicted their growth to 270 thousands.
At the same time, today the Australian Dollar was supported by strong data on the Industrial Production in China. In May, the index grew by 6.0% that was 0.1% better than expectations of experts.
Support and resistance
on the is moving up while the price range is narrowing. is turning down and forming a sell signal. is falling having left the overbought zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.7538 ( local low), 0.7327, 0.7300, 0.7259, 0.7200 (2 June low), 0.7144 (24 May low), 0.7100 (psychologically important level).
Resistance levels: 0.7400 ( local high), 0.7426, 0.7463, 0.7500 (9 June high), 0.7533, 0.7567 (3 May high).
Long positions can be opened after the price rebound from the level of 0.7358 (with the appropriate indicators signals) with targets at 0.7463, 0.7500 and stop-loss at 0.7327. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 0.7327 with the target at 0.7200 and stop-loss at 0.7375. Validity – 2-3 days.