2016-09-14 14:23:24

Review and dynamics
After some rise in the pair with the opening of tading day, the pair AUD / USD started to decline at the European session. On the daily chart the pair AUD / USD has broken down important support level of 0.7475 (EMA200 and the lower line of the descending channel on the daily chart and EMA50 on the weekly chart) and is approaching the next key support level of 0.7445 (Fibonacci 23.6% to the decrease in pair since July 2014).

The pair AUD / USD is in the framework of two downward channels (on the weekly chart and the newly formed channel on the daily chart).

Our opinion
On the 4-hour, daily and weekly charts the Indicators OsMA and Stochastic give signals for short positions.

In case of breakout of the support level of 0.7445, negative trend may prevail. In this case the pair AUD/ USD may drop to the levels of 0.7325 and 0.7140 (Lows of May).

As an alternative scenario the pair can rise in the medium-term in case of breakout of the resistance level of 0.7580 (EMA200 on 4-hour chart), which is unlikely without support of the strong fundamental drivers.

Therefore, tomorrow's Australian data, which will be published from 04:00 to 04:30 (GMT + 3) will be of great importance. In case of the negative data the pair will drop and can reach the lows of this year at the level of 0.6835.

In case of the positive data to pair AUD / USD can go up above the level of 0.7580. The pair AUD/USD may grow up to the levels of 0.7750 and 0.7820 (Fibonacci 38.2% and the highs of April), 0.7900 and 0.8000 (EMA144 on the weekly chart). However, short positions seem more preferable.

Support levels: 0.7445, 0.7325, 0.7290, 0.7200 and 0.7140.
Resistance levels: 0.7475, 0.7580, 0.7685, 0.7720, 0.7750, 0.7800, 0.7820, 0.7900 and 0.8000.

Trading tips

Sell on the market. Stop-Loss: 0.7520. Take-Profit: 0.7445, 0.7325, 0.7290, 0.7200 and 0.7140.
Buy Stop: 0.7520. Stop-Loss: 0.7465. Take-Profit: 0.7580, 0.7685, 0.7720, 0.7750, 0.7800, 0.7820 and 0.7900.

Near important level of 0.7475
Near important level of 0.7475

In the descending channel
In the descending channel