2012-07-19 17:38:00
1. Current trend of the currency pair AUD/USD
The Australian dollar is demonstrates steady growth. After breaking down key resistance level of 1.0330, the pair moved further up and reached the level of 1.400. Current trend was triggered by the European debt crisis, since due to its negative effect, commodity currencies, such as the Australian dollar look more attractive to the investors.
2. Key levels (Support and Resistance)
The key resistance level for the “bulls” will be the level of 1.0440. Next resistance level will be 1.0470 that is the highs of April.
Resistance level will be the points 1.0365 and 1.0245.
3. Best entry/exit points
Taking into account current market situation, it is advisable to enter the market at the point1.0420 with stop at the level of 1.036 in case of buying transactions. If situation in the market will be negative, selling operations are recommended at the level of 1.0245 with stop at 1.0330.
4. Supporting facts
Positive effect of the statement of the RBA has supported the growth in the Australian currency. The minutes of the meeting clearly indicate that there are prerequisites for reduction in the interest rate by the Reserve Bank of Australia. Due to the crisis in Eurozone, the Australian dollar is becoming very attractive for investors. Australia has the highest interest rates among the countries with credit rating of “AAA”. The cost of loans in the interbank market ranges from 3.4% to 3.6%. Additional support to the Australian currency is provided by the growing prices for oil.
The Australian dollar is demonstrates steady growth. After breaking down key resistance level of 1.0330, the pair moved further up and reached the level of 1.400. Current trend was triggered by the European debt crisis, since due to its negative effect, commodity currencies, such as the Australian dollar look more attractive to the investors.
2. Key levels (Support and Resistance)
The key resistance level for the “bulls” will be the level of 1.0440. Next resistance level will be 1.0470 that is the highs of April.
Resistance level will be the points 1.0365 and 1.0245.
3. Best entry/exit points
Taking into account current market situation, it is advisable to enter the market at the point1.0420 with stop at the level of 1.036 in case of buying transactions. If situation in the market will be negative, selling operations are recommended at the level of 1.0245 with stop at 1.0330.
4. Supporting facts
Positive effect of the statement of the RBA has supported the growth in the Australian currency. The minutes of the meeting clearly indicate that there are prerequisites for reduction in the interest rate by the Reserve Bank of Australia. Due to the crisis in Eurozone, the Australian dollar is becoming very attractive for investors. Australia has the highest interest rates among the countries with credit rating of “AAA”. The cost of loans in the interbank market ranges from 3.4% to 3.6%. Additional support to the Australian currency is provided by the growing prices for oil.
