FxWirePro: AUD/USD changes short term trend from bullish to bearish
AUD/USD has declined towards 0.7050 levels after Australian Central Bank kept its interest steady on Tuesday. The Reserve Bank of Australia, however kept the door open for further move in the coming months, saying that s…
AUD/USD has declined towards 0.7050 levels after Australian Central Bank kept its interest steady on Tuesday. The Reserve Bank of Australia, however kept the door open for further move in the coming months, saying that subdued inflation meant there was scope for reduction if needed to support the economy.
The pair fell down to 0.7045 levels in mid European session, currently it is approaching to test support level located at 0.7019.
The resistance level at 0.7135 is set to hold the bulls from advancing further above and push the pair downwards in the short term, as the US dollar is set to strengthen across the board against Australian dollar in the backdrop of Friday's nonfarm payrolls data.
Strong support can be seen at 0.7019, a break below this level will expose the pair towards next support level located at 0.6990.
Major resistance can be seen at 0.7135, a break above this level will open the gates towards 0.70.7200 levels.
Recommendation: We prefer short around 0.7120, targets 0.7000, 0.6950, SL 0.7170.
