Current trend
Since the beginning of the week, the pair is showing a significant decline. The pair was substantially pressured by the Bank of Japan statement. As was expected, the regulator left monetary policy unchanged. However, in its Monetary Policy Statement it noted that prospects for the world economy growth remain gloom.
In addition, according to today’s RBA Meeting Minutes, the Australian GDP continues growing but labour market conditions are still poor. In particular, wages growth remain low.
Support and resistance
Bollinger Bands on the daily chart is moving up while the price range is narrowing. MACD turned down and formed a sell signal. Stochastic is near the overbought zone.
The indicators recommend considering correctional sales.
Support levels: 85.00 (local low), 84.46, 83.69 (10 March low), 83.00, 82.41, 82.06.
Resistance levels: 85.69 (local high), 86.00, 86.39 (local high), 87.00, 87.30 (4 January high), 88.00, 88.60.
Trading tips
Short positions can be opened from current prices with targets at 83.00, 82.00 and stop-loss at 85.00. Validity – 2-4 days.
Long positions can be opened above the level of 85.00 (with the appropriate indicators signals) with targets at 86.39, 87.00 and stop-loss at 84.00. Validity – 2-3 days.
Since the beginning of the week, the pair is showing a significant decline. The pair was substantially pressured by the Bank of Japan statement. As was expected, the regulator left monetary policy unchanged. However, in its Monetary Policy Statement it noted that prospects for the world economy growth remain gloom.
In addition, according to today’s RBA Meeting Minutes, the Australian GDP continues growing but labour market conditions are still poor. In particular, wages growth remain low.
Support and resistance
Bollinger Bands on the daily chart is moving up while the price range is narrowing. MACD turned down and formed a sell signal. Stochastic is near the overbought zone.
The indicators recommend considering correctional sales.
Support levels: 85.00 (local low), 84.46, 83.69 (10 March low), 83.00, 82.41, 82.06.
Resistance levels: 85.69 (local high), 86.00, 86.39 (local high), 87.00, 87.30 (4 January high), 88.00, 88.60.
Trading tips
Short positions can be opened from current prices with targets at 83.00, 82.00 and stop-loss at 85.00. Validity – 2-4 days.
Long positions can be opened above the level of 85.00 (with the appropriate indicators signals) with targets at 86.39, 87.00 and stop-loss at 84.00. Validity – 2-3 days.