Today the AUD/USD pair is falling.
The pair is pressured by investors expectations of an interest rates increase in the US at the December Fed’ meeting and further easing in Australia. In addition, Australian economic problems may get worse. The unemployment rate could increase as companies in the mining industry continue cutting investments, while prices keep falling amid slowing Chinese economy.
Thus, until 1 December when the RBA Interest Rate Decision is due the pair will remain under pressure. If interest rate are increased then, the fall in the pair will accelerate.
Support and resistance
Since the beginning of the month, the pair remains in an ascending correctional channel on the 4-hour chart.
However, a breakdown of the support levels at 0.7200 (EMA50), 0.7170 (EMA200, EMA144, lower border of the on the 4-hour chart, EMA50 on the ) would return the price in a on the and sends the pair to 0.7030 (November lows), 0.6950, 0.6910 (year lows).
OsMA and on the 4-hour and recommend short positions.
Support levels: 0.7170, 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.