At today’s meeting, RBA Governor Glenn Stevens pointed out to improvements in employment in Australia and the general state of the economy outside of the mining industry.
Nevertheless, amid falling investment in mining companies, slowing inflation rates, reduction in commodities exports to China and slowdown of the export oriented Australian economy further interest rates cuts seems to be the likeliest scenario.
Today attention needs to be paid to the US data on the GDP, Personal Consumption Expenditures Prices, Consumer Confidence and Richmond Fed Manufacturing Index. Positive data will weaken the pair.
Support and resistance
The pair broke out the resistance level at 0.7150 (ЕМА200 on the 4-hour chart, ЕМА50 on the daily chart) and continues its correctional growth towards 0.7370 (ЕМА144 on the daily chart), 0.7500 (23.6% correction, upper border of an ascending channel, ЕМА200 on the daily chart).
At the same time, a breakdown of the level of 0.7030 (November lows and bottom border of the ascending channel) would resume a downward trend towards 0.6950, 0.6910 (year lows).
OsMA and Stochastic on the 4-hour and daily charts recommend long positions.
Support levels: 0.7150, 0.7100, 0.7030, 0.6950, 0.6910.
Resistance levels: 0.7250, 0.7325, 0.7370, 0.7500.
Pending sell orders can be placed at the level of 0.7190 with targets at 0.7110, 0.7090, 0.7030, 0.6950, 0.6910 and stop-loss at 0.7220.
Pending buy orders can be placed at the level of 0.7240 with targets at 0.7290, 0.7300, 0.7370 and stop-loss at 0.7190.