The quotations of the Australian dollar to greenback strengthened from 10 July until yesterday’s session, when the sellers entered the market. The supply appeared in a not accidental place, because of a resistance within the 0.7050 range, which had previously also proven itself as a support.
As can be seen on the AUD/USD daily chart below, the price drew a bearish outside bar, which indicates the potential for declines. In this scenario, the nearest support is around 0.6915.
Alternatively, a permanent breakout of yesterday’s maxima and overcoming the resistance zone within 0.7050 would open the way for further increases. Another bull target could be the zone around the round level of 0.7200, which includes the maximum of February and April this year.
Speculators of pairs with the US dollar should pay attention today to the following publications from the United States:
- building permits (for June)
- crude oil stocks
- beige book.