The pair continues moving along a narrow that was formed in the end of June.
The pair was supported by the RBA decision to keep its key interest rate unchanged which increased demand for the Australian currency amid growing appetite for risk assets. At the same time, the US Dollar was pressure by poor statistics on country’s GDP for the second quarter of the year that substantially lowered the probability of an interest rate hike before the end of the year.
This week, extra attention needs to be paid to data on Home Loans from Australia and Retail Sales and the Producer Price Index in the US.
Support and resistance
In the short-term, there is a chance of a downward correction towards the lower border of the channel at the level of 0.7635 that coincides with the middle MA of on the 4-hour chart, from where the growth will resume. At the same time, if the RBA cuts the interest rate, the price could break down the lower border of the channel and fall to the level of 0.7565.
Technical indicators suggest a growth continuation. are directed up. histogram is in the positive zone and its volumes are growing.
Support levels: 0.7635, 0.7600, 0.7565, 0.7530, 0.7500, 0.7450, 0.7420, 0.7375, 0.7300, 0.7150.
Resistance levels: 0.7670, 0.7685, 0.7715, 0.7750, 0.7800, 0.7835.
Long positions can be opened from current levels and from the levels of 0.7635, 0.7600 with targets at 0.7750, 0.7800, 0.7835.