Current trend
This week the pair has been falling and by now it has decreased to the level of 0.7500. On Tuesday US dollar was influenced by the publication of the recent MoM of Reserve Bank of Australia. Generally, it confirmed the "dovish" trend in the regulator. Its members decided to follow the economic situation but to abstain from changes in the rate. Moreover, they pointed out the weakness of the labor market, increase of unemployment rate to 5.9%, and growth of partial employment with low salaries. All these factors had a detrimental effect on the consumer capacity of households which is also falling. On the other hand, US dollar was supported by statistics on the volume of US industrial output (in March the indicator increased by 0.5%).
Support and resistance
The price broke down through the level of 0.7537 (Fibo correction 23.6%) giving the prospect for further downward movement to the level of April minimums 0.7470. This is confirmed by technical indicators: Stochastic is directed downwards, and MACD histogram has moved to the negative zone. Bollinger Bands diverge confirming the downward trend. One may speak about the growth of the price when the level 0.7537 is broken out. In this case further correction is possible to the levels of 0.7578 (correction 38.2%) and 0.7611 (correction 50.0%). However the middle line of Bollinger Bands will act as additional resistance in this scenario.
Support levels: 0.7500, 0.7470, 0.7420.
Resistance levels: 0.7537, 0.7578, 0.7611, 0.7645.
Trading tips
In the current situation short positions may be opened below 0.7500 with targets at 0.7470, 0.7420 and stop-loss at 0.7520. In case the level of 0.7537 is broken out, long positions wil targets at 0.7578, 0.7611 and stop-loss at 0.7510 will be relevant.
This week the pair has been falling and by now it has decreased to the level of 0.7500. On Tuesday US dollar was influenced by the publication of the recent MoM of Reserve Bank of Australia. Generally, it confirmed the "dovish" trend in the regulator. Its members decided to follow the economic situation but to abstain from changes in the rate. Moreover, they pointed out the weakness of the labor market, increase of unemployment rate to 5.9%, and growth of partial employment with low salaries. All these factors had a detrimental effect on the consumer capacity of households which is also falling. On the other hand, US dollar was supported by statistics on the volume of US industrial output (in March the indicator increased by 0.5%).
Support and resistance
The price broke down through the level of 0.7537 (Fibo correction 23.6%) giving the prospect for further downward movement to the level of April minimums 0.7470. This is confirmed by technical indicators: Stochastic is directed downwards, and MACD histogram has moved to the negative zone. Bollinger Bands diverge confirming the downward trend. One may speak about the growth of the price when the level 0.7537 is broken out. In this case further correction is possible to the levels of 0.7578 (correction 38.2%) and 0.7611 (correction 50.0%). However the middle line of Bollinger Bands will act as additional resistance in this scenario.
Support levels: 0.7500, 0.7470, 0.7420.
Resistance levels: 0.7537, 0.7578, 0.7611, 0.7645.
Trading tips
In the current situation short positions may be opened below 0.7500 with targets at 0.7470, 0.7420 and stop-loss at 0.7520. In case the level of 0.7537 is broken out, long positions wil targets at 0.7578, 0.7611 and stop-loss at 0.7510 will be relevant.