Current trend
This week quotes of the currency pair AUD/USD have been slowly rising and today they have reached weekly highs of 0.8996. The rise in the Australian currency was triggered by positive statistics. It became known that business activity index in February amounted to 48.6 points, closely approaching to the level of 50 points. Number of approvals to construct increased by 6.8%, which was above the forecast. GDP reached the level of 0.8%, which was the best performance since Q1 2012.
Levels of support and resistance
In the near future the pair is likely to trade in the range of 0.8990-0.8940 (upper channel of Bollinger bands indicator). Investors will wait for the data from American labour market on Friday. Uncertainty in the political situation in Ukraine will also be a constraining factor.
Technical indicators do not give clear signals. Bollinger bands are in the sideways as well as Stochastic lines. MACD histogram is ready to move to the positive zone and form a buy signal; however, taking into account all fundamental facts we can expect that breakdown will be false.
Resistance levels: 0.8990, 0.9030 and 0.9050.
Support levels: 0.8940, 0.8912, 0.8889.
Trading tips
In the current situation it is advisable to open long positions with the target of 0.8990. It also makes sense to place pending orders to sell and buy at the boundaries of the range: 0.8990 and 0.8940.
Dmitry Zolotov
Analyst of LiteForex Group of Companies
