2016-07-20 15:13:02

Review and dynamics
At the end of last week and since the beginning of today's trading session, the pair AUD/USD has declined. Currently, support levels are at 0.7500 (EMA144), 0.7480 (EMA200 and the lower line of the ascending channel on 4-hour chart). The pair AUD/USD remains above the key support levels of 0.7415 (EMA200 on the daily chart), 0.7445 (EMA50 on the weekly chart and Fibonacci 23.6% to the wave of decline since July 2014).
The Australian currency is supported by a number of fundamental factors, such as high interest rate in Australia (1.75%), the decrease in investors’ concerns about Brexit. At the same time, the difference between the monetary policy of the Fed and the RBA, as well as declining world prices for raw materials and oil, put pressure on the Australian dollar.

Our opinion
On the daily charts and 4-hour charts the indicators OsMA and Stochastic give signals for short positions. The pair is likely to decline to support levels 0.7445 and 0.7415 amid the rise in the USD. In case of break out of the level of 0.7415 the pair may fall to the levels of 0.7350 (the lower line of the ascending channel on the daily chart), 0.7290 (the lower line of the ascending channel on the weekly chart) or further down to 0.7000, 0.6975, 0.6910 and 0.6835. However, currently the price is above the levels of 0.7445 and 0.7415. If uptrend continues the nest targets will be at the levels of 0.7615, 0.7700 and 0.7820 (Fibonacci 38.2% level). Further targets are 0.8030 and 0.8130.

Support levels: 0.7480, 0.7445, 0.7415, 0.7350, 0.7290 and 0.7200.
Resistance levels: 0.7500, 0.7615, 0.7700, 0.7720, 0.7800 and 0.7820.

Trading tips
Sell Stop: 0.7460. Stop-Loss: 0.7510. Take-Profit: 0.7445, 0.7415, 0.7400, 0.7380, 0.7300, 0.7260, 0.7200 and 0.7140.
Buy Stop: 0.7510. Stop-Loss: 0.7460. Take-Profit: 0.7600, 0.7615, 0.7700, 0.7720 and 0.7820.

At support level of 0.7480
At support level of 0.7480

In the ascending channel
In the ascending channel