This week the pair is growing, gradually reaching the psychological level of 0.8000.
USD is weakening due to the negative employment market’s data publications and the decrease of industrial production in January. In addition, the dollar is under pressure of the growth of global economy. Today RBA's Governor Philip Lowe commented upon the economic situation in the country. He mentioned significant success in the employment market (400K jobs were created last year), the improvement of the confidence and growth of commodity prices. Despite the growth of Australian economy, RBA will maintain neutral monetary policy, as the inflation level is still low and the regulator sees no reason for interest rate correction.
Today at 15:30 (GMT+2) the housing market data will be released in the USA.
Support and resistance
On the 4-hour chart, the instrument is trading in the upper part of Bollinger Bands. The key resistance level is 0.7980. The indicator is pointed upwards, as the price range has widened, which reflects the further growth of the instrument.
MACD histogram is in the positive zone, keeping a strong buy signal.
Stochastic is ready to enter the overbought area.
Resistance levels: 0.7980, 0.8011, 0.8050.
Support levels: 0.7761, 0.7802, 0.7859, 0.7895, 0.7934.
Trading tips
Long positions can be opened at the current level with the targets at 0.8050, 0.8070 and stop loss 0.7910. Implementation period: 1–3 days.
Short positions can be opened below the level of 0.7895 with the targets at 0.7835, 0.7800 and stop loss 0.7935. Implementation period: 1–2 days.
Australian vs US Dollar
Buy Sell Spread 0.79873 0.7985 23
Scenario
Timeframe Day's Range Recommendations BUY Entry Point 0.7977 Take Profit 0.8050, 0.8070 Stop Loss 0.7910 Support levels 0.7761, 0.7802, 0.7859, 0.7895, 0.7934, 0.7980, 0.8011, 0.8050
Alternative scenario
Recommendations SELL STOP Entry Point 0.7890 Take Profit 0.7835, 0.7800 Stop Loss 0.7935 Support levels 0.7761, 0.7802, 0.7859, 0.7895, 0.7934, 0.7980, 0.8011, 0.8050