Current trend

This week, the pair demonstrates moderate growth amid the escalation of the China-US trade conflict, as well as the release of weak statistics on the real estate market and the unexpected drop in Services PMI in the US.

On Tuesday, the PRC government announced a program to stimulate domestic demand and its own economy to prevent its recession due to new US import duties. At the same time, it became known that Washington would allocate USD 12B to help farmers affected by Chinese retaliatory duties. It is noteworthy that the PRC tariffs touched products from those American regions that supported President Trump at the elections. By doing so the Chinese authorities are trying to deprive the current president of direct supporters. Beijing's actions have supported the pair, as China is Australia's most important economic partner.

June Durable Goods Orders data is due today at 14:30 (GMT+2). The US Census Bureau expects an increase in the index, which will contribute to a moderate strengthening of USD. In addition, traders expect the publication of statistics on the US labor market.

Support and resistance

On H4 chart, the instrument could not consolidate above the strong resistance level of 0.7460. Bollinger Bands reverse upwards, and the price range expanded, which indicates the continuation of the uptrend. MACD histogram is in the positive zone with its volumes growing and keeping the buy signal. Stochastic left the overbought area having formed the sell signal.

Support levels: 0.7428, 0.7411, 0.7391, 0.7358, 0.7341, 0.7323.

Resistance levels: 0.7460, 0.7478, 0.7493, 0.7525.

Trading tips

Short positions may be opened from 0.7428 with targets at 0.7355, 0.7340 and stop loss at 0.7465.

Long positions may be opened above 0.7465 with target at 0.7500 and stop loss at 0.7445.

Implementation period: 1-2 days.

Australian vs US Dollar

BuySellSpread
0.72950.7283120

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point0.7425
Take Profit0.7355, 0.7340
Stop Loss0.7465
Support levels0.7323, 0.7341, 0.7358, 0.7391, 0.7411, 0.7428, 0.7460, 0.7478, 0.7493, 0.7525

Alternative scenario

RecommendationsBUY STOP
Entry Point0.7470
Take Profit0.7500
Stop Loss0.7445
Support levels0.7323, 0.7341, 0.7358, 0.7391, 0.7411, 0.7428, 0.7460, 0.7478, 0.7493, 0.7525
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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