Current trend
During yesterday's trading the prices of AUD/USD dropped to 0.7925 after the reduction of demand for high risk assets due to the growing geopolitical tension. Today the pressure on the pair kept growing as investors reacted to the comments of Deputy Head of the Reserve Bank of Australia Michelle Bullock. She pointed out that high level of indebtedness made households vulnerable, and that RBA would take that into account when planning its monetary policy.
Today the main event connected with market movements will be the speech of the Fed's chairman Janet Yellen with the topic "Inflation, Uncertainty, and Monetary Policy". Any mention of the terms of yet another interest rate increase by the Fed may cause market volatility.
Support and resistance
Bollinger Bands on H4 chart demonstrate decrease. The price range is narrowing. MACD indicator is below the zero and signal lines with its volumes growing and keeping a strong sell signal. Stochastic has reached the oversold level, but its lines are directed downwards.
Resistance levels: 0.7950, 0.7985, 0.8020, 0.8065.
Support levels: 0.7900, 0.7870, 0.7820.
Trading tips
Long positions may be opened after breaking through the level of 0.7950 with targets at 0.7985 and 0.8020 and stop-loss at 0.7930. The period of implementation is 1-2 days.
The pair may be sold at the level of 0.7900 with target at 0.7820 and stop-loss at 0.7930. The period of implementation is 1-2 days.
During yesterday's trading the prices of AUD/USD dropped to 0.7925 after the reduction of demand for high risk assets due to the growing geopolitical tension. Today the pressure on the pair kept growing as investors reacted to the comments of Deputy Head of the Reserve Bank of Australia Michelle Bullock. She pointed out that high level of indebtedness made households vulnerable, and that RBA would take that into account when planning its monetary policy.
Today the main event connected with market movements will be the speech of the Fed's chairman Janet Yellen with the topic "Inflation, Uncertainty, and Monetary Policy". Any mention of the terms of yet another interest rate increase by the Fed may cause market volatility.
Support and resistance
Bollinger Bands on H4 chart demonstrate decrease. The price range is narrowing. MACD indicator is below the zero and signal lines with its volumes growing and keeping a strong sell signal. Stochastic has reached the oversold level, but its lines are directed downwards.
Resistance levels: 0.7950, 0.7985, 0.8020, 0.8065.
Support levels: 0.7900, 0.7870, 0.7820.
Trading tips
Long positions may be opened after breaking through the level of 0.7950 with targets at 0.7985 and 0.8020 and stop-loss at 0.7930. The period of implementation is 1-2 days.
The pair may be sold at the level of 0.7900 with target at 0.7820 and stop-loss at 0.7930. The period of implementation is 1-2 days.