Current trend

AUD continues to trade in the long-term downward trend against USD.

The pair consolidated in sideways consolidation, showing growth of more than 100 points, then reversed and returned to local lows. Throughout July the instrument left the range of 0.7350-0.7450 only once. The catalyst for this movement was multidirectional data on the main sectors of the US and Australian economies. In addition, the Fed did not raise rates again, which puts pressure on the US currency, not allowing the pair to break through strong support levels.

Today the data on the Unemployment rate, Nonfarm payrolls and PMIs are expected to be published.

Support and resistance

Today, using a strong fundamental background, the pair can break through strong support levels and test a new local low. In case of failure, it will continue to trade in sideways consolidation, which is more likely, judging by the low volatility of the instrument. Technically, the pair remains in the mid-term narrowing sideways channel, reaching its lower limit, after which the probability of forming an upward wave is high. The long-term downtrend is also maintained, which indicates a high probability of getting out of consolidation with a sharp "shot" down.

Indicators on the D1 chart and above confirm the forecast of further decline: MACD shows the preservation of the high volume of short positions, and Bollinger Bands are directed downwards.

Resistance levels: 0.7410, 0.7450, 0.7480, 0.7530, 0.7600.

Support levels: 0.7650, 0.7570, 0.7370, 0.7350, 0.7330, 0.7300.

Trading tips

In this situation short positions may be opened from the current level and from the resistance level of 0.7410 with target at 0.7330 and stop loss at 0.7470.

Australian vs US Dollar

BuySellSpread
0.712510.7115695

Scenario

TimeframeWeekly
RecommendationsSELL
Entry Point0.7395
Take Profit0.7330
Stop Loss0.7470
Support levels0.7300, 0.7330, 0.7350, 0.7370, 0.7570, 0.7650, 0.7410, 0.7450, 0.7480, 0.7530, 0.7600

Alternative scenario

RecommendationsSELL LIMIT
Entry Point0.7410
Take Profit0.7330
Stop Loss0.7470
Support levels0.7300, 0.7330, 0.7350, 0.7370, 0.7570, 0.7650, 0.7410, 0.7450, 0.7480, 0.7530, 0.7600
AUD/USD: the pair rebounded downwards

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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