Friday's trade saw AUD/USD within the range of 0.6983-0.7047. The pair closed at 0.7003, inching up 0.07% on a daily basis, while extending the gain from Thursda y. The daily high has been the highest level since January 8th, when a high of 0.7076 was registered. In weekly terms, AUD/USD added 1.95% to its value during the current week, or the most since the week ended on December 6th, when it advanced 2.03%. It has been the first increase in the past three weeks. The pair has depreciated 3.76% so far during the current month, following three consecutive months of gains.
On Monday resistance may be expected in the area around the high from January 22nd (0.7047) and then – within the 0.7075-0.7090 area. Support, on the other hand, may be received at the low from January 22nd (0.6983), then – at the hourly 55-period EMA (0.6974) and finally – at the hourly 200-period EMA (0.6959).
No relevant macroeconomic reports and other events, which may influence AUD/USD trading, are scheduled on Monday (January 25th).
Correlation with other Majors
Taking into account the week ended on January 22nd and the daily closing levels of the currency pairs involved, we come to the following conclusions in regard to the strength of relationship:
AUD/USD to NZD/USD (0.7969, or strong)
AUD/USD to USD/CHF (0.7428, or strong)
AUD/USD to USD/JPY (0.7243, or strong)
AUD/USD to GBP/USD (0.3681, or moderate)
AUD/USD to EUR/USD (-0.7399, or strong)
AUD/USD to USD/CAD (-0.9393, or very strong)
1. During the examined period AUD/USD moved strongly in one and the same direction with NZD/USD, USD/CHF and USD/JPY, while moving strongly in the opposite direction compared to EUR/USD.
2. AUD/USD moved almost equally in the opposite direction compared to USD/CAD during the week.
Daily and Weekly Pivot Levels
By employing the traditional calculation method, the Monday pivot levels for AUD/USD are presented as follows:
Central Pivot Point – 0.7011
R1 – 0.7039
R2 – 0.7075
R3 – 0.7103
S1 – 0.6975
S2 – 0.6947
S3 – 0.6911
By using the traditional method of calculation again, the weekly pivot levels for AUD/USD are presented as follows:
Central Pivot Point – 0.6958
R1 – 0.7092
R2 – 0.7180
R3 – 0.7314
S1 – 0.6870
S2 – 0.6736
S3 – 0.6648