The decent bounce in Oil price helps the commodity currency AUD off from the intraday lows closed 100 pips above from the low of 0.6983 levels.
The cross is trading at 0.7100 remains above 20dsma but facing stiff resistance at the higher levels.
What’s on today?
AUD- RBA Gov Stevens Speaks
December home loans monthly basis
USD- Retail and core retail sales
Prelim UoM consumer sentiment
FOMC member Dudley Speaks
The Aussie dollar has found some support in recent months from a less dovish stance by the central bank. Traders watch closely to Stevens words for any hints on monetary policy.
Trading support finds at 0.7060, 0.7000 and 0.6970
Resistance seems at 0.7130, 0.7160 and 0.7200
If the prices manage to remain above 0.7160 the bulls might aim at 0.7200 and 0.7200 during a day.
In case, if the cross close above 0.7160 on a weekly basis we expect strong up move the next week targets at 0.7200, 0.7240 and in the extreme 0.7300 likely.
Before the Stevens speech and Home loans data the pattern favors to bulls sl 0.7070 target 0.7130 and 0.7160 levels. On the higher side 0.7140 and 0.7160 offering strong resistance.
Flip side, selling opens below 0.7070 but strengthens only below 0.7055 (safe selling emerges).
Yesterday we forecast selling with sl 0.7160, the cross made high at 0.7152 changed the direction low made at 0.6973 levels.