Current trend

After the formation of narrowing consolidation, the pair dropped down significantly at the end of last trading week. The fundamental factor of the fall was the comments of RBA representatives on the positive effect on inflation from the weak Australian dollar. In addition, on Friday the US dollar received support after the release of data on US inflation.

Today the pair AUD/USD has reached the level of 0.7260. This week, we are waiting for statistics on retail sales, industrial production, the labor market and leading US indices. Australia will respond with data on the level of unemployment.

Support and resistance

After a strong fall, one should wait for a correction wave in the medium term, however, at higher timeframes, technical indicators confirm a downtrend: MACD indicates an increase in the volume of short positions; the Bollinger bands are directed downwards.

Support levels: 0.7275, 0.7250, 0.7200, 0.7180, 0.7150, 0.7130, 0.7070.

Resistance levels: 0.7300, 0.7330, 0.7370, 0.7410, 0.7505, 0.7560, 0.7600.

Trading tips

In this situation, short positions can be opened from key resistance levels of 0.7300, 0.7330, 0.7370 with the target of 0.7150 and a stop loss of 0.7420.

Australian vs US Dollar

BuySellSpread
0.7240.7237624

Scenario

TimeframeWeekly
RecommendationsSELL LIMIT
Entry Point0.7300, 0.7330, 0.7370
Take Profit0.7150
Stop Loss0.7420
Support levels0.7070, 0.7130, 0.7150, 0.7180, 0.7200, 0.7250, 0.7275, 0.7300, 0.7330, 0.7370, 0.7410, 0.7505, 0.7560, 0.7600
AUD/USD: towards new lows

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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