Current trend

The Australian dollar is declining against the US currency moving within a broad descending channel.

In early July, the pair has tested several times the key support level and the local minimum of the beginning of May. Later, failing to break through this mark, the instrument moved to the lateral consolidation. Over the past two weeks, the price moves within 0.7330-0.7480 range.

Today, investors are waiting for the publication of data on industrial production and the housing market in the United States.

Support and resistance

In the short term, as part of the upward correction, the instrument can again test the level of 0.7480, which is the upper border of the current channel. Later, USD will continue to dominate and the pair will rush to local lows of 0.7330, 0.7300. In the medium term, there is a high probability of a breakdown of these levels, in which case the road to new minima at 0.7100, 0.7050, 0.6970 will be opened.

Technical indicators on the D1 chart and above confirm downward trend forecast: MACD shows the preservation of the high volume of short positions, and Bollinger Bands are pointing downwards.

Support levels: 0.7370, 0.7350, 0.7330, 0.7300, 0.7275, 0.7150, 0.7100, 0.7050, 0.6970.

Resistance levels: 0.7450, 0.7480, 0.7505, 0.7530, 0.7560, 0.7600.

Trading tips

Short positions may be opened from the current level; pending orders may be opened from the levels of 0.7450, 0.7480 with targets at 0.7150, 0.6970 and stop loss at 0.7520.

Australian vs US Dollar

BuySellSpread
0.722650.7224223

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point0.7410
Take Profit0.7450, 0.7480
Stop Loss0.7430
Support levels0.6970, 0.7050, 0.7100, 0.7150, 0.7275, 0.7300, 0.7330, 0.7350, 0.7370, 0.7450, 0.7480, 0.7505, 0.7530, 0.7560, 0.7600

Alternative scenario

RecommendationsSELL LIMIT
Entry Point0.7450, 0.7480
Take Profit0.7150, 0.6970
Stop Loss0.7520
Support levels0.6970, 0.7050, 0.7100, 0.7150, 0.7275, 0.7300, 0.7330, 0.7350, 0.7370, 0.7450, 0.7480, 0.7505, 0.7530, 0.7560, 0.7600
AUD/USD: AUD continues to become cheaper

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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