2016-08-18 11:40:36

Technical performance:

Prev. closure: 0.7656; Daily range: 0.7651-0.7723;
Opening: 0.7656; 52-week range: 0.6824-0.7836;
Annual profit: +4.31%; Previous day's change (%): -0.52.

Analytical review:

  • The Australian dollar has grown by over 200 points against the US dollar since early August. During yesterday's trading session, the currency pair managed to hold a local support level of 0.7635, and the AUD therefore continued to rally.
  • Important statistics on the Australian economy have been released today. The Australian Bureau of Statistics reported that the unemployment rate had decreased in July, amounting to 5.7% against last year's value of 5.8%. Australian employment levels grew by 26,200 jobs, which exceeds a forecast value of 11,000.
  • The release of the FOMC minutes showed that the US FED is in two minds to tighten the monetary policy. Some FED representatives consider it necessary to wait for extra information on the state of the US economy.
  • The Commitments of Traders Report shows that important market operators have increased the number of their long positions by 738 contracts to 60187 contracts. The number of short positions amounts to 23885 contracts.
  • A news factor is worth attention this week: a release of production activity data from the Federal Reserve Bank of Philadelphia (today). These data may affect market volatility and evolution.

Summary:

  • Upbeat economic data from Australia and the US FED's uncertainty regarding further monetary policy support demand for the Australian dollar. According to the Commitments of Traders Report, important operators have increased their long positions.
  • So, we expect that the AUD will consolidate against the USD in the nearest future. We advise you to search for market entry points to open long positions.

Trading tips for AUD/USD

Key levels:
Support levels: 0.7665, 0.7635, 0.7585
Resistance levels: 0.7725, 0.7750

Medium-term trading, H1
The currency is currently trading near a support level at 0.7725. Once this level is broken and tested and relevant confirming signals appear (Price Action patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 0.7760, 0.7795 and 0.7850 , with Trailing Stop applied.

Medium-term trading, H1
Medium-term trading, H1

Short-term trading, M15
The currency is trading at 0.7695-0.7715. We advise you to search for market entry points once this zone is broken and tested. Positions shall be opened in the direction of the signal line and the nearest support/resistance level. Risk per trade: no more than 3% of equity. Stop order shall be placed a bit above/below the signal line. Prospective profits shall be fixed partly, at 50%, 30%, and 20% of a prospective fluctuation, with Trailing Stop applied.

Short-term trading, M15
Short-term trading, M15