Current trend

Today, the pair AUD/USD has reached a local minimum and moved to recovery against the backdrop of consolidating a large volume of short positions.

Currently, investors are more cautious, since the consequences of the trade war can have a negative impact on USD. The aggressive strategy of Trump's administration caused discord between the US and its major allies, the EU and Canada. For this reason, China is strengthening its position, while the US is seeking economic isolation of the PRC. The consequences of economic confrontation can force the Fed to return to a neutral monetary policy, which will lead to a massive sale of USD. And although the existing dynamics are still speculative, investors need to take into account the growing global risks.

Today at 14:30 (GMT+2), the US Department of Commerce will publish data on personal expenditure. The projected growth of the indicator will contribute to further reduction of the instrument. However, if the actual data will be worse than the forecast, one can expect a significant strengthening of the pair in the afternoon.

Support and resistance

On the H4 chart the instrument is testing the moving average of Bollinger Bands. The indicator is directed downwards and the price range reduced insignificantly which indicates further correction. MACD histogram is in the negative zone keeping the sale signal. Stochastic is approaching the oversold zone and does not give a clear signal for opening positions.

Support levels: 0.7330, 0.7305, 0.7267, 0.7227.

Resistance levels: 0.7390, 0.7420, 0.7444, 0.7530, 0.7573, 0.7683.

Trading tips

Long positions may be opened above the level of 0.7405 with targets at 0.7450, 0.7485 and stop-loss at 0.7380. Implementation period: 1-2 days.

Short positions may be opened from the level of 0.7315 with target at 0.7265 and stop-loss at 0.7355. Implementation period: 1-3 days.

Australian vs US Dollar

BuySellSpread
0.726490.7262722

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point0.7410
Take Profit0.7450, 0.7485
Stop Loss0.7380
Support levels0.7227, 0.7267, 0.7305, 0.7330, 0.7390, 0.7420, 0.7444, 0.7530, 0.7573, 0.7683

Alternative scenario

RecommendationsSELL STOP
Entry Point0.7310
Take Profit0.7265
Stop Loss0.7355
Support levels0.7227, 0.7267, 0.7305, 0.7330, 0.7390, 0.7420, 0.7444, 0.7530, 0.7573, 0.7683
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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