Current trend

Today, the AUD/USD pair strengthened due to the release of strong Australian construction market data.

According to the Australian Bureau of Statistics, in June, Building Permits increased by 6.4%, and as a result, the YoY data grew by 1.6%.

USD is declining before Fed Interest Rate Decision on Wednesday. The rate is expected to stay at the level of 2.0%. In addition, the currency is under pressure due to instability in the US Administration. President Donald Trump said that he admitted the possibility of suspending the work of the Government if Democratic Party votes against the draft law on the borders protection, which includes the building a wall on the border with Mexico, in Congress.

Today at 14:30 (GMT+2) market participants expect the publication of statistics on personal income/expenditure in the US. The data is extremely important before the meeting of the Fed and can cause strong volatility in the market.

Support and resistance

On the 4-hour chart, the upward trend is in the correction. The instrument is at the upper border of Bollinger bands. The indicator is directed sideways, and the price range is narrowed, which indicates a change in the upward dynamics. MACD histogram is in the positive area, keeping a weak buy signal. Stochastic entered the overbought area, a strong sell signal can be formed during the day.

Resistance levels: 0.7440, 0.7462, 0.7484, 0.7505.

Support levels: 0.7309, 0.7328, 0.7362, 0.7390, 0.7413.

Trading tips

Short positions can be opened below the level of 0.7405 with the targets at 0.7360, 0.7345 and stop loss 0.7430.

Long positions can be opened above the level of 0.7440 with the target at 0.7485 and stop loss 0.7425.

Implementation period: 1–2 days.

Australian vs US Dollar

BuySellSpread
0.718240.71704120

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point0.7400
Take Profit0.7360, 0.7345
Stop Loss0.7430
Support levels0.7413, 0.7390, 0.7362, 0.7328, 0.7309, 0.7440, 0.7462, 0.7484, 0.7505

Alternative scenario

RecommendationsBUY STOP
Entry Point0.7450
Take Profit0.7485
Stop Loss0.7425
Support levels0.7413, 0.7390, 0.7362, 0.7328, 0.7309, 0.7440, 0.7462, 0.7484, 0.7505
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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