Last week USD showed the greatest weakening so far this year and reached its 7-months minimum. A difficult situation for the new US administration radically decreased the trust of the investors in USD. Reserve assets and currencies received support and grew against US dollar . The pair AUD/USD reached its 2-weeks maximum. The shows that the price acting within the range of channel D1 (blue) moved from the lower border of channel H4 (black) and having broken through the levels of 0.7380 and 0.7440 is trading around the upper border of the channel. The consolidation of the price within this range will give additional support for further consolidation of the pair.
Today's macroeconomic statistics includes the news from the USA on the return on 6-months bills (17:30 GMT+2). The profitability of the bills has been growing for five weeks in a row, and if the tendency continues, it may give certain support to USD. In these circumstances the possibility of technical correction is high.
Support and resistance
Support levels: 0.7380, 0.7310, 0.7270.
Resistance levels: 0.7570, 0.7530, 0.7490, 0.7440.
Short positions may be opened below the level of 0.7430 with target at 0.7380 and stop-loss at 0.7450.
Alternatively, long positions may be opened from the level of 0.7440 with targets around 0.7530 and stop-loss at 0.7410.
The period of implementation is 1-2 days.