General analysis AUDUSD for 14.10.2021
Current Dynamics
AUD/USD is strengthening this week, as analysts forecast a rapid economic recovery after the lifting of quarantine measures in Australia. The market ignored the negative data on employment in Australia, which confirms the forecast of a rapid recovery in economic activity. At the same time, the Reserve Bank of Australia maintains a cautious stance, despite the fact that investors are counting on an earlier rate hike. RBA deputy head Guy Debelle said today that the regulator is worried about slowing inflation, while the U.S. and Europe are worried about uncontrollable price pressures.
Meanwhile, pressure on the dollar was shaped by a decline in U.S. Treasury yields. Additional support for the pair was provided by the growth in yields on Australia's three-year bonds. Also yesterday the minutes of the Fed meeting was published, which did not bring any surprises. The regulator intends to start QE cuts in mid-November and complete the process by mid-2023.
Today at 14:30 (GMT+2), the U.S. released data on producer prices and initial jobless claims.
Support and Resistance Levels
On the 4-hour chart, the instrument is strengthening along the upper boundary of the Bollinger Bands. The indicator is pointing upward and the price range is widening, indicating a continuation of the uptrend. MACD histogram is holding a strong buy signal. Stochastic is preparing to leave the overbought area, a strong sell signal may be formed within 1-2 days
- Support levels: 0.7185, 0.7225, 0.7270, 0.7310, 0.7360.
- Resistance levels: 0.7410, 0.7450, 0.7480.
Trading scenarios
- Long positions should be opened at the current price with a target of 0.7465 and a stop-loss at 0.7385. Implementation period: 1-2 days.
- Short positions can be opened below the level of 0.7390 with a target of 0.7325 and a stop-loss at 0.7415. Implementation period: 1-2 days.