2016-11-17 11:15:02

Review and dynamics
The pair AUD/USD has broken down important support level of 0.7525 (ЕМА200 and the lower line of the ascending channel on the daily chart and ЕМа50 on the weekly chart) and is approaching support level of 0.7445 (Fibonacci 23.6% after the decline since July 2014). The lower line of the ascending channel on the weekly chart has been broken at the level of 0.7570.

Our opinion
The American dollar continues to rise in the currency market. At the same time the Australian dollar remains under pressure from the decline in prices of commodities such as oil, gas, coal and iron ore. If the price falls below the level of 0.7445., next targets will be at the level of 0.7325, or even 0.7140 (lows of May).

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

Breakdown of the two key support levels of 0.7525, 0.7445 will indicate the end of the upward correction after the decline since July 2014 at the level of 0.6835.

As an alternative scenario, the pair go up and consolidation above the levels of 0.7525 and 0.7600, or even to 0.7700s, 0.7775 and 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).

Support levels: 0.7445, 0.7325, 0.7290, 0.7200 and 0.7140.
Resistance levels: 0.7525, 0.7600, 0.7700, 0.7750, 0.7820, 0.7900 and 0.7960.

Trading tips
Sell on the market. Stop-Loss: 0.7510. Take-Profit: 0.7445, 0.7325, 0.7290, 0.7200 and 0.7140.
Buy Stop: 0.7510. Stop-Loss: 0.7460. Take-Profit: 0.7525, 0.7600, 0.7700, 0.7750, 0.7820, 0.7900 and 0.7960.

Near the key support level of 0.7445
Near the key support level of 0.7445

Breakdown of 0.7525
Breakdown of 0.7525