Current trend

AUD strengthens against USD after RBA's Governor Philip Lowe Speech.

For the first time in a long while, the head of the regulator spoke about tightening monetary policy. His speech did not differ from yesterday’s RBA Rate Statement, but the currency received a growth momentum. Lowe noted the progress of the Australian economy in general and the labor market in particular. Due to the conditions created in the labor market, the regulator expects wage growth in the country, which will contribute to increased personal expenses, growth in mortgage lending and consumer confidence. In addition, the head of the Australian Central Bank noted the acceleration of inflation.

Today, there is a lack of key statistics from both sides. Tomorrow at 14:30 (GMT+2) market participants expect US labor market and producer prices data publications.

Support and resistance

On the 4-hour chart, the instrument is trading at the top of Bollinger bands. The indicator is directed upwards, the price range has expanded, which indicates the preservation of the upward dynamics. The key resistance is the level of 0.7445. MACD histogram is in the positive area, keeping the buy signal. Stochastic left the overbought area, forming a sell signal.

Resistance levels: 0.7445, 0.7489, 0.7534, 0.7572, 0.7621, 0.7660.

Support levels: 0.7314, 0.7356, 0.7404.

Trading tips

Long positions can be opened above the level of 0.7450 with the targets at 0.7515 0.7550 and stop loss 0.7425.

Short positions can be opened below the level of 0.7390 with the target at 0.7315 and stop loss 0.7410.

Implementation period: 1–2 days.

Australian vs US Dollar

BuySellSpread
0.718240.71704120

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point0.7455
Take Profit0.7515, 0.7550
Stop Loss0.7425
Support levels0.7314, 0.7356, 0.7404, 0.7445, 0.7489, 0.7534, 0.7572, 0.7621, 0.7660

Alternative scenario

RecommendationsSELL STOP
Entry Point0.7385
Take Profit0.7315
Stop Loss0.7410
Support levels0.7314, 0.7356, 0.7404, 0.7445, 0.7489, 0.7534, 0.7572, 0.7621, 0.7660
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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