2016-10-24 15:48:08

Review and dynamics
The Australian dollar along with the USD remains one of the most stable currencies in the foreign exchange market. Upward momentum in the pair AUD/USD continues and the pair remain position above the key support levels 0.7445 (Fibonacci 23.6% after the decline since July 2014) and 0.7520 (ЕМА200, the lower limit of the ascending channel on the daily chart). Today, the pair AUD/USD rebounded from support level of 0.7600 (ЕМА50 on the daily chart) and is rising in the ascending channel on the daily chart.

Our opinion
On the weekly chart a new ascending channel has been formed with the upper limit near the level of 0.7960 (ЕМА144 on the weekly chart). It is likely that the pair will rise in this rising channel up to the levels of 0.7820 (Fibonacci 38.2% and highs of April), 0.7960 (ЕМА144 on the weekly chart), 0.8130 (Fibonacci 50.0%) and 0.8200 (ЕМА200 on the weekly chart).

This scenario is possible in case of the weak US data and in case of the support of the OsMA and Stochastic indicators on the daily and weekly charts. However, the indicators give mixed signals, which is more typical for a flat.

Amid the rise in the USD, the pair AUD/USD also can follow the example of the other major currencies and start to decline against the USD.

This scenario will be possible after break down of the support level of 0.7600 with the target of 0.7520. Breakdown of the support level of 0.7445 can cause the termination of the uptrend of the pair AUD/USD and trigger the decline to support levels of 0.7325, 0.7140 (lows of May).

Support levels: 0.7600, 0.7520, 0.7445, 0.7325, 0.7290, 0.7200 and 0.7140.
Resistance levels: 0.7700, 0.7820, 0.7900 and 0.7960.

Trading tips
Sell on the market. Stop-Loss: 0.7645. Take-Profit: 0.7600, 0.7520, 0.7500 and 0.7445.
Buy Stop: 0.7650. Stop-Loss: 0.7610. Take-Profit: 0.7700, 0.7800, 0.7820, 0.7900 and 0.7960.

New ascending channel
New ascending channel

Above the key levels of 0.7445 and 0.7520
Above the key levels of 0.7445 and 0.7520