In June, the Australian dollar against the US one continues to recover after a significant fall in April and early May. The pair returned to the medium-term downward channel and has now reached the upper border of this trend.
The main catalyst for this movement was the fall in the attractiveness of the overbought American currency: investors fix short positions, waiting for a longer upward correction. Moreover, strong economic growth data for Q1 were released in Australia, which gave serious support to AUD.
This week, there will be no key releases for the US dollar, so one should not expect increased interest in the currency.
Support and resistance
The pair stopped at a strong resistance level of 0.7670, which is the upper border of the descending channel, which makes it difficult to pass this mark. On the other hand, a strong fundamental background in Australia and a decline in demand for USD can provide momentum for further growth with the possibility of the upward correction to the levels of 0.7700, 0.7800. From them, the instrument can go down to local minima: one should not expect a fall from the current level, but the overall trend remains descending.
Technical indicators on W1 chart confirm the decline forecast in the medium term: MACD indicates the preservation of the high volume of short positions, and Bollinger Bands are pointing downwards.
Support levels: 0.7600, 0.7560, 0.7530, 0.7505, 0.7480, 0.7450, 0.7410.
Resistance levels: 0.7650, 0.7670, 0.7700, 0.7735, 0.7770, 0.7800.
Short positions may be opened from levels of 0.7700, 0.7770, 0.7800 with targets at 0.7450, 0.7410 and stop-loss at 0.7870.
Australian vs US Dollar
|Entry Point||0.7700, 0.7770, 0.7800|
|Take Profit||0.7450, 0.7410|
|Support levels||0.7410, 0.7450, 0.7480, 0.7505, 0.7530, 0.7560, 0.7600, 0.7650, 0.7670, 0.7700, 0.7735, 0.7770, 0.7800|
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