Current trend

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.

Trading tips

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

BuySellSpread
0.728380.7281424

Scenario

TimeframeWeekly
RecommendationsSELL LIMIT
Entry Point0.7700, 0.7770, 0.7800
Take Profit0.7450, 0.7410
Stop Loss0.7870
Support levels0.7410, 0.7450, 0.7480, 0.7505, 0.7530, 0.7560, 0.7600, 0.7650, 0.7670, 0.7700, 0.7735, 0.7770, 0.7800
AUD/USD: correction may be long

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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