The Australian dollar continues to decline against the US one due to a significant increase in the investment attractiveness of the latter.
It is worth noting that all major competitors are experiencing serious pressure by USD. But not only the growth of the US currency was the main catalyst for the fall of the pair: "the Australian" has significantly dropped in view of the release of negative data on the labor market. Despite the projected decline in the unemployment rate, the rate of change in the number of employed fell sharply, and on this wave, the pair went down.
Today, the downward momentum has only intensified, and by the end of this week, there is a high probability of its retention due to the lack of key releases in the US and the movement of the pair on trade sentiments, which now support the US currency.
Support and resistance
The pair remains in the medium-term downward channel, and the rebound from the upper limit of this trend (0.7820) was predictable. In the future, the pair will continue to decline to the lower borders of the channel - 0.7610, 0.7575. In the long term, we can expect a decline to a local low of mid-December - the level of 0.7500.
Technical indicators confirm the fall outlook: MACD indicates the growth of volumes of short positions, and Bollinger Bands have reversed downwards.
Support levels: 0.7650, 0.7610, 0.7575, 0.7530, 0.7500.
Resistance levels: 0.7700, 0.7740, 0.7770, 0.7800, 0.7835.
In this situation, short positions may be opened from the current level with targets at 0.7500, 0.7575 and stop-loss at 0.7760.
Australian vs US Dollar
|Take Profit||0.7500, 0.7575|
|Support levels||0.7500, 0.7530, 0.7575, 0.7610, 0.7650, 0.7700, 0.7740, 0.7770, 0.7800, 0.7835|
The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.