Current trend

Having reached two-year lows at the end of last week, the instrument moved to growth and is currently trading near the psychological level of 0.7200.

Despite the low level of consumer confidence in Australia, AUD strengthened after the US offered to begin a new round of negotiations on trade tariffs with the PRC.

In addition, USD was under pressure from yesterday’s negative data on US inflation. In August, the Consumer Price Index fell from 2.9% YoY to 2.7% YoY (minimum since April), and the Base Consumer Price Index rose from 2.4% to 2.2% (the worst indicator since May). Market participants feared that poor inflation data, along with pressure from President Trump's administration and trade tensions, could force FOMC members to hold only one interest rate increase instead of the two planned ones.

Today, the publication of data on retail sales in the US is expected at 14:30 (GMT+2), as well as the data on industrial production (15:15 (GMT+2)).

Support and resistance

On the H4 chart, the instrument is traded in the upper part of Bollinger Bands, trying to consolidate above the psychological level of 0.7200. The indicator is directed upwards and the price range has widened, which indicates the continuation of the uptrend. MACD histogram is in the positive zone, keeping a strong buy signal. Stochastic does not give clear signal for entering the market.

Resistance levels: 0.7234, 0.7266, 0.7308, 0.7345, 0.7987.

Support levels: 0.7195, 0.7146, 0.7110, 0.7076.

Trading tips

Long positions may be opened from the current level with target at 0.7250 and stop loss at 0.7180. Implementation period: 1 day.

Short positions could be opened below 0.7175 with targets at 0.7105, 0.7075 and stop loss at 0.7205. Implementation period: 1-2 days.

Australian vs US Dollar

BuySellSpread
0.726880.7266424

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point0.7201
Take Profit0.7250
Stop Loss0.7180
Support levels0.7076, 0.7110, 0.7146, 0.7195, 0.7234, 0.7266, 0.7308, 0.7345, 0.7987

Alternative scenario

RecommendationsSELL STOP
Entry Point0.7170
Take Profit0.7105, 0.7075
Stop Loss0.7205
Support levels0.7076, 0.7110, 0.7146, 0.7195, 0.7234, 0.7266, 0.7308, 0.7345, 0.7987
AUD/USD: general review

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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