Current trend

The AUD/USD pair started the current week with growth and reached 0.6704. The Australian currency was supported by the decision of the Reserve Bank of Australia (RBA) to keep the interest rate at the same level of 4.10%, which was justified by the need for an additional assessment of the consequences of the already implemented increase in the cost of borrowing. In addition, officials warned that if necessary, the cycle of monetary tightening could be resumed.

Today, the growth of quotations slowed down against the background of the publication of the June data on the Australian Services PMI, which fell from 52.1 points to 50.3 points and was on the verge of a stagnation zone. Thus, the sector that previously provided the country with economic growth now ceases to support it.

In addition, the expectation of today's publication of the June minutes of the US Federal Reserve contributes to the containment of investors' activity. Experts will look for hints of further actions of the American regulator in them. So far, most analysts believe that officials will resume raising interest rates as early as July and will not extend the pause in the monetary tightening cycle.

Support and resistance

The AUD/USD pair is close to 0.6713 (Murray level [6/8]), supported by the center line of Bollinger Bands, the breakout of which will allow quotes to continue moving towards 0.6835 (Murray level [8/8]) and 0.6897 (Murray level [ 1] /8], the area of June highs). The key for the "bears" seems to be the level of 0.6591 (Murray level [4/8]), after fixing below which the quotes will be able to return to the level of 0.6469.

Technical indicators point to the continuation of the upward trend: Bollinger Bands and Stochastic are directed upwards, while MACD is near the zero line and its volumes are insignificant.

Resistance levels: 0.6713, 0.6835, 0.6897.

Support levels:  0.6591, 0.6469.

Trading tips

Long positions may be opened above 0.6713 with targets at 0.6835, 0.6897 and stop-loss at 0.6650. Implementation period: 5-7 days.

Short positions may be opened from the level of 0.6591 with target at 0.6469 and stop loss at 0.6670.