2016-09-22 12:32:09

Review and dynamics
At the beginning of this week the pair AUD/USD rebounded from the important support level of 0.7475 (ЕМА200 on the daily chart and the lower line of the ascending narrowing triangle).The upper limit of the triangle goes through the level of 0.7730 (highs of August and September and also the upper line of the descending channel on the weekly chart).

The pair AUD/USD is gaining upward momentum after yesterday's Fed decision leave interest rates unchanged and may reach the nearest resistance level of 0.7730.

Our opinion
On 4- hour and daily charts the indicators OsMA and Stochastic give signals to buy; on the weekly chart the indicators also give signals for long positions.

Narrowing ascending triangle is a pattern showing that the trend will continue. Breakdown of the upper limit at the level of 0.7730 can trigger further rice in the pair AUD/USD.

In case of breakout of the resistance level of 0.7820 (Fibonacci 38.2% to the decline since July 2014, the highs of April) the AUD/USD can go to the levels of 0.8000 (ЕМА144 on the weekly chart), 0.8130 (Fibonacci 50.0%) and 0.8200 (ЕМА200 on the weekly chart).

In case of the alternative scenario the pair can break down support level of 0.7445 ( Fibonacci 23.6%). In this case, the negative trend may prevail, and the pair AUD/USD can decline to the levels of 0.7325 and 0.7140 (lows of May).

Support levels: 0.7570, 0.7530, 0.7475, 0.7445, 0.7325, 0.7290, 0.7200 and 0.7140.
Resistance levels: 0.7730, 0.7820, 0.7900 and 0.8000.

Trading tips

Sell Stop: 0.7620. Stop-Loss: 0.7670. Take-Profit: 0.7570, 0.7530, 0.7475, 0.7445, 0.7325, 0.7290 and 0.7200.
Buy on the market. Stop-Loss: 0.7620. Take-Profit: 0.7685, 0.7720, 0.7750, 0.7800, 0.7820 and 0.7900.

In the triangle
In the triangle

Rebound from the level of 0.7475
Rebound from the level of 0.7475