AUD/USD has continued to trade within a wide upward channel this week. Today, quotes have reached its lower border and then started to rally again. The price is currently located near the middle line of Bollinger bands coinciding with a level of 0.7855. The bands themselves are narrowing as it happens ahead of a serious price jump. Market participants are not likely to risk before tomorrow's publication of final statistics for US GDP over the last year. The US economy is expected to register a slight growth of 2.4%, which may put pressure on the dollar.
Support and resistance
Technical indicators are pointing to an upcoming price growth. Bollinger Bands are directed upwards. The MACD histogram is in the positive zone and its volumes are stable. Stochastic lines reversed upwards.
Support levels: 0.7855, 0.7800 0.7710.
Resistance levels: 0.7915, 0.7950.
Long positions with a target at 0.7915 and 0.7950 opened at current price seem relevant to the situation. Short positions can be opened in case the price drops below 0.7855. Their target would be a level of 0.7800.
Analyst at LiteForex Investments Limited