Current trend
The Australian dollar continues to strengthen against the USD. The pair has already reached four-month highs. The “bulls” had tested the level of 0.9295 but the pair failed to consolidate above this level , and started correction. The Australian dollar was supported by the statement of the chairman of Australian Reserve Bank Glenn Stevenson, who said that Australian economy shall look for new ways of development, which will not depend on mining industry. Investors interpreted this news as a positive signal and started to buy Australian currency. Note that important news releases, which can affect the rate of AUD/USD, are not scheduled for today.
Levels of support and resistance
On the four-hour chart technical indicators show continuation of the ascending movement. Bollinger bands are directed upwards, MACD histogram is in the positive zone, its volumes are increasing, forming a buy signal.
Resistance levels: 0.9295, 0.9345, 0.9395 and 0.9440.
Support levels: 0.9245, 0.9210 and 0.9150.
Trading tips
If current ascending trend continues, it is recommended to open buy positions from the current price level with the nearest target of 0.9295. Breakout of the level of 0.9295 will open the way to 0.9345.
Vadim Smarzh,
Analyst of LiteForex Group of Companies
