Current trend

The AUD/USD pair continues trading in a Bearish trend, having reached its lowest levels since December 2017.

Last week, the American currency strengthened amid a publication of strong macroeconomic data on the labour market, GDP and Personal Consumption Expenditure. In addition, the US Dollar is supported by easing of tensions on Korean Peninsula. Today, the HIA published data on New Homes Sales in Australia that showed a fall in sales of 2%, which pressured the pair.

Also today, data on the Personal Income and Spending is due to be published in the US. Considering previous reading, there is a high possibility that the data comes out strong which would further pressure the pair.

Support and resistance

On the 4-hour chart, the price is testing the middle MA of the Bollinger Bands. The indicator is directed downward while the price range narrowed, which could indicate a change in the direction of the trend. The MACD histogram is in the negative zone, keeping a sell signal. The Stochastic has left the overbought zone, having formed a strong sell signal.

Support levels: 0.7561, 0.7548, 0.7531, 0.7507, 0.7472.

Resistance levels: 0.7589, 0.7622, 0.7640, 0.7668, 0.7694.

Trading tips

Short positions can be opened from current prices with the target at 0.7500 and stop-loss at 0.7595. Validity – 1 day.

Long positions can be opened above the level of 0.7600 with the target at 0.7665 and stop-loss at 0.7560. Validity – 1-2 days.

Australian vs US Dollar

BuySellSpread
0.72950.7283120

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point0.7555
Take Profit0.7500
Stop Loss0.7595
Support levels0.7472, 0.7507, 0.7531, 0.7548, 0.7561, 0.7589, 0.7622, 0.7640, 0.7668, 0.7694

Alternative scenario

RecommendationsBUY STOP
Entry Point0.7610
Take Profit0.7665
Stop Loss0.7560
Support levels0.7472, 0.7507, 0.7531, 0.7548, 0.7561, 0.7589, 0.7622, 0.7640, 0.7668, 0.7694
AUD/USD: general review

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.

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