Current trend

The pair AUD/USD dropped yesterday at the backdrop of the US Consumer price index growth. The index, which is a key indicator for assessing inflation and changes in consumer preferences, rose to 2.8% YoY in May, surpassing the forecast of 2.7%.

Today, the instrument is regaining its losses. The market is expecting the Fed's interest rate decision, as well as subsequent comments from the regulator on monetary policy and a press conference of the Federal Open Market Committee. The probability of raising the rate to 2.00% from 1.75% is estimated at 80%.

Support and resistance

On the D1 chart there is a correction of the downward movement, the pair is growing in the direction of the midline of Bollinger Bands. MACD histogram is in the negative zone keeping a signal for opening short positions.

Support levels: 0.7570, 0.7550, 0.7530, 0.7500.

Resistance levels: 0.7585, 0.7600, 0.7615, 0.7630, 0.7650, 0.7670.

Trading tips

Short positions may be opened from the level of 0.7550 with target at 0.7500 and stop-loss at 0.7580.

Long positions may be opened from the level of 0.7600 with target at 0.7650 and stop-loss at 0.7570.

Implementation period: 1-3 days.

Australian vs US Dollar

BuySellSpread
0.742810.7425823

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point0.7550
Take Profit0.7500
Stop Loss0.7580
Support levels0.7500, 0.7530, 0.7550, 0.7570, 0.7585, 0.7600, 0.7615, 0.7630, 0.7650, 0.7670

Alternative scenario

RecommendationsBUY STOP
Entry Point0.7600
Take Profit0.7650
Stop Loss0.7570
Support levels0.7500, 0.7530, 0.7550, 0.7570, 0.7585, 0.7600, 0.7615, 0.7630, 0.7650, 0.7670
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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