Current trend

On Thursday, USD strengthened against AUD. Investors are focused on the introduction of additional US-Chinese reciprocal duties by USD 16 billion each. The United States raised tariffs, in particular, on motorcycles produced, railway cars, and steam turbines in China. The PRC responded with duties on American cars, buses, coal, and other goods. The new restrictions came into force amid the negotiations between the countries going in Washington.

AUD is under pressure due to political uncertainty in Australia, where Prime Minister Turnbull has lost the support of his own party.

Today, investors are waiting for Fed's head Jerome Powell speech at the symposium in Jackson Hole. He will make a report on monetary policy in a changing economy. The market also awaits the regulator's comments on the latest critical statements of President Trump.

Support and resistance

On the 4-hour chart, there is a correction of the downward movement, the instrument is traded between the bottom border and the middle line of Bollinger bands. MACD histogram is in the negative area, the signal line is prepared to cross the zero line downwards, after which a signal to open short positions will be received.

Resistance levels: 0.7290, 0.7319, 0.7340, 0.7381, 0.7452.

Support levels: 0.7250, 0.7235, 0.7200.

Trading tips

Short positions can be opened from the current level with the target at 0.7200 and stop loss 0.7319.

Long positions can be opened from the level of 0.7340 with the target at 0.7400 and stop loss 0.7310.

Implementation period: 1–3 days.

Australian vs US Dollar

BuySellSpread
0.733740.73254120

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point0.7270
Take Profit0.7200
Stop Loss0.7319
Support levels0.7200, 0.7235, 0.7250, 0.7290, 0.7319, 0.7340, 0.7381, 0.7452

Alternative scenario

RecommendationsBUY STOP
Entry Point0.7340
Take Profit0.7400
Stop Loss0.7310
Support levels0.7200, 0.7235, 0.7250, 0.7290, 0.7319, 0.7340, 0.7381, 0.7452
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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