Current trend

Yesterday, the AUD/USD pair strengthened due to the news that China and the US could negotiate to resolve controversial trade issues.

The intention of Washington and Beijing to find a compromise is a good sign for Australian exporters since China is Australia's main trading partner. However, the fall in commodity prices has a negative impact on AUD. In addition, the recent US CPI correspond to the "hawkish" mood of the Fed and restrain the growth of the pair.

Today at 17:00 (GMT+2) Fed Monetary Policy Report will be published. Given the positive inflationary dynamics and positive data on a number of key macroeconomic indicators, investors expect the pair to fall on the last trading day of the current week.

Support and resistance

On the 4-hour chart, the pair tries to consolidate above the middle line of Bollinger bands. The indicator is turned sideways, the price range is unchanged, which reflects the development of the upward trend correction. MACD histogram is in the negative area, holding a weak sell signal. Stochastic has entered the overbought area, a strong sell signal can be formed in the next few hours.

Resistance levels: 0.7421, 0.7441, 0.7468, 0.7507, 0.7535.

Support levels: 0.7305, 0.7325, 0.7351, 0.7392.

Trading tips

Long positions can be opened above the level of 0.7425 with the targets at 0.7485, 0.7510 and stop loss 0.7390.

Short positions can be opened below the level of 0.7385 with the target at 0.7345 and stop loss 0.7405.

Implementation period: 1–2 days.

Australian vs US Dollar

BuySellSpread
0.726910.7266625

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point0.7430
Take Profit0.7485, 0.7510
Stop Loss0.7390
Support levels0.7305, 0.7325, 0.7351, 0.7392, 0.7421, 0.7441, 0.7468, 0.7507, 0.7535

Alternative scenario

RecommendationsSELL STOP
Entry Point0.7380
Take Profit0.7345
Stop Loss0.7405
Support levels0.7305, 0.7325, 0.7351, 0.7392, 0.7421, 0.7441, 0.7468, 0.7507, 0.7535
AUD/USD: general analysis

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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