- Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-holds-above-070-handle-good-to-buy-dips-weakness-only-below-06920-149966) has hit targets.
- AUD/USD is extending gains for the fourth consecutive session, pair currently at 0.7140, day's range 0.7067/0.7140.
- Technicals indicate further upside for the pair, bias is higher, Stochs,RSI and MACD point north, gains upto 0.7250 likely.
- Bid tone around the Aussie gathered pace after BoJ announced negative rates and hinted at more interest rate cuts if required.
- Later in the day, the US preliminary Q4 GDP could influence the broad based demand for the US dollars.
- The main data focus today will be the first estimate of US GDP in Q4, which is forecast to show a marked slowdown from annualised growth of 2.0% in the prior quarter.
- Forecasts are for a reading of 0.8%. A reading which is better than the market forecast is bullish for the dollar.
Resistance Levels:
R1: 0.7160 (Nov 13 highs)
R2: 0.72 (Dec 18 highs & psychological level)
R3: 0.7250 (trendline resistance)
Support Levels:
S1: 0.7068 (session lows)
S2: 0.7040 (5-DMA)
S3: 0.70 (Jan 28th lows)
