After strong decline from the last week, Aussie tested resistance at 0.9390 tonight, which is representing the 38.2% Fibonacci retracement of last week price range and today’s pivot R2. We expect that the outreach of upward movement will be limited by 0.9420 – pivot R3 connected with 50% Fibonacci.
Looking down, there is a clear support level at 0.9360 (Pivot Point) and also 0.9350 (today’s Pivot S1). Both levels determine the approximate range of Friday’s price action. Another important support near 0.9330 (pivot S2, low from last week), which stopped recent big drop from 2 and 3 July.
This week, USD pairs are influenced by JOLTS report regarding the estimated number of vacancies in domestic economy (Tuesday) and by the FOMC minutes scheduled for Wednesday. In the Committee’s mitnutes we will look for members opinion about labor market condition, as well as possible earlier hike of interest rates. Current speculations look for mid 2015 hikes.
