At present, the RBA needs to make sure that a decrease in interest rates is really appropriate. According to RBA Meeting's Minutes, business conditions in the country are seen as very favorable and economic growth is likely to strengthen despite high unemployment rate.
Today, attention needs to be paid to Consumer Price Index, Industrial Production and Capacity Utilization statistics for October, due in the US. The indicator are expected to grow that will negatively affect the AUD/USD pair.
Support and resistance
On Friday, the AUD/USD pair rebounded down from the resistance level of 0.7150 (EMA200 and EMA144 on the 4-hour chart) and, at present, continues declining within channels on the 4-hour (lower border at 0.6950, September lows) and weekly (lower border below 0.6700) charts.
At the same time, there is an upward channel on the daily chart between the support and resistance levels of 0.7030 (November lows) and 0.7500 (EMA200 and 23.6% Fibonacci correction), respectively. Thus, an upward correction towards 0.7150 (EMA50), 0.7200, 0.7370 (EMA144) is possible, but OsMA and Stochastic indicators recommend short positions.
Support levels: 0.7030, 0.6950, 0.6910.
Resistance levels: 0.7150, 0.7200, 0.7325, 0.7370, 0.7500.
Short positions can be opened from the level of 0.7065 with targets at 0.7030, 0.6950, 0.6910 and stop-loss at 0.7115.
Long positions can be opened from the level of 0.7125 with targets at 0.7150, 0.7200, 0.7300, 0.7370 and stop-loss at 0.7080.