Today the Reserve bank of Australia announced its decision on interest rates. In line with expectations, interest rates were cut from 1.75% to 1.50% that had a strong negative impact on the AUD/USD pair. This afternoon attention needs to be paid to a report on US personal income and spending in June. A growth in both indicators might add to pressure on the pair.
Support and resistance
Bollinger Bands on the daily chart is directed up while the price range is narrowing. MACD histogram is in the positive zone, but its volumes are falling. Stochastic has left the oversold zone. The indicators recommend waiting for clearer trading signals.
Long positions can be opened from the current level with the target at 0.7650 and stop-loss at 0.7505. Validity – 1 day. Short positions can be opened from the level of 0.7505 with targets at 0.7480, 0.7440 and stop-loss at 0.7525. Validity – 1-2 day.