Last week, volatility in the pair AUD/USD was high. At the beginning of the week the pair had grown and reached the level of 0.8075. However, the pair failed to break through the resistance level, and it gave the “bears” a chance to quickly win back lost positions. After that the USD has been growing and by the end of the week the price reached the level of 0.7875. It became known today that the Bank of Australia has decreased interest rate to 2.0%. Market’s reaction to this news was ambiguous. At first the price went down to the level of 0.779; however, later it rose up to 0.7910.
Following the minor correction the pair has consolidated above the level of 0.7875, which coincides with Fibonacci retracement of 61.8%. It is also a strong support level. The “bulls” will try to maintain existing pace and will make an attempt to push the price higher up to the level of 0.7910. The “bears” will aim at breaking down and consolidation above the level of 0.7875.
Support and resistance
Resistance levels: 0.7910, 0.7950 and 0.8000.
Support levels: 0.7875, 0.7850, 0.7840 and 0.7825. The level of 0.7875 is the key level of the “bears”.
Short positions can be opened below the level of 0.7865 and from the level of 0.7950. Buy positions are recommended if the price breaks down the level of 0.7960.