Since the beginning of the week, the pair is growing amid positive commentaries by RBA Governor Glenn Stevens. According to the head of the regulator, the Australian economy is likely to be on the rise at present. Furthermore, in the country remains near its targets thus allowing for additional stimulation measures should they be required.
The pair was also supported by strong GDP data for the fourth quarter of 2015 from Australia. The index showed a 3.0% growth, which was significantly better than expectations.
Support and resistance
on the is moving up while the price range remains unchanged. resumed its growth and formed a buy signal. is growing as it bounced off the oversold zone.
The indicators recommend long positions.
Support levels: 0.7200 (local low), 0.7186, 0.7158, 0.7128, 0.7100, 0.7068 (19 February low), 0.7045, 0.7000, 0.6973 (9 February low).
Resistance levels: 0.7242 (local high), 0.7258 (23 February high), 0.7282, 0.7300, 0.7327 (31 December high).
Long positions can be opened after the breakout and consolidation above the level of 0.7258 with targets at 0.7300, 0.7350, 0.7400 and stop-loss at 0.7220. Validity – 2-4 days.
Short positions can be opened after the price rebound from the level of 0.7258 with targets at 0.7150, 0.7100 and stop-loss at 0.7300. Validity – 2-4 days.