After the significant growth in the beginning of the year due to the weakening of the USD and growth of the raw material prices, the price reversed downwards in the end of the previous year. The lowering momentum also became the Head of the RBA Philip Lowe’s speech, when he noted that the interest rate will not be changed in the nearest future. The pair was also pressed by the growth of the USD sue to the expectations of the FRS interest rate rise.
Today the members of the USA FRS Open Market Committee members and the Head of the FRS Janet Yellen, which can support the USD, are worth attention.
Support and resistance
The pair is lowering, breaking the lower border of the short term upward channel. The lowering of the price to the levels of 0.7370, 0.7400 is expected in the middle term.
Technical indicators reflect the development of the downward trend. The Bollinger Bands indicator is reversing downward. The MACD histogram is in the positive zone, its volumes are decreasing rapidly.
Support levels: 0.7515, 0.7445, 0.7400, 0.7240, 0.7200, 0.7160.
Resistance levels: 0.7610, 0.7695, 0.7735, 0.7780, 0.7810, 0.7870, 0.8000.
Open short positions open at the current price with the target at 0.7370, 0.7400 and stop loss at 0.7620.
|Take Profit||0.7370, 0.7400|
|Key Levels||0.7160, 0.7200, 0.7240, 0.7400, 0.7445, 0.7515, 0.7610, 0.7695, 0.7735, 0.7780, 0.7810, 0.7870, 0.8000|