Wednesday is full of important economic news. ADP Employment Change and Chicago Purchasing Managers' Index for September are released in the US. Moreover, Fed's Yellen Speech is due at 10:00 p.m. (GMT+3).
However, Non-farm Payrolls data for September, due on Friday, is of key importance, as it may influence the Fed’s interest rate decision.
During the Asian session today, the AUD/USD pair strengthened slightly, supported by the growth of Asian indices. Nevertheless, in the medium term, the AUD, being, mainly, a commodity currency, tends to remain under pressure amid concerns over slowing global growth.
Support and resistance
OsMA and Stochastic on the 4-hour chart have turned to long positions. However, on the daily, weekly and monthly charts, the indicators are in the sell zone.
Local targets may be the levels of 0.6960, 0.6910. The breakout and consolidation above the level of 0.7270 may allow the pair to grow to 0.7500 (23.6% Fibonacci and EMA144 on the daily chart) in the short term. A current short-term correction may last to the levels of 0.7035 (ЕМА50), 0.7100 (ЕМА144), 0.7125 (ЕМА200 on the 4-hour chart).
Support levels: 0.6960, 0.6910.
Resistance levels: 0.7035, 0.7100, 0.7125, 0.7170, 0.7200, 0.7270.
Short positions can be opened from the current levels or from 0.7035 with stop-loss at 0.7060. Sell Limit orders can be placed at 0.7090, 0.7120 with stop-loss at 0.7190. Targets are the levels of 0.6960, 0.6910, 0.6885, 0.6800.
Long positions become valid after the consolidation above the level of 0.7270.