The Australian dollar against the US one is still traded in a long-term downward trend.
Since the end of January AUD has lost more than 1000 points. The main catalyst for the depreciation of the Australian currency is the soft monetary policy of the RBA. The position of the regulator's representatives remains the same: a decline of the national currency positively affects the Australian economy in the current situation. By contrast, demand for the US dollar is growing, which provides a rapid decline in the pair. Recently days, the pair has moved to a corrective growth and is now trading near the level of 0.7200.
This week, the main impact on the instrument will provide data on the labor market and major US indices.
Support and resistance
In the medium term, the price is expected to be fixed within the current range. This means that the pair will go down either from the current level or from key resistance levels (0.7250, 0.7275), which will be considered the upper border of the downward channel. In the long term, one may expect the instrument to fall below 0.7000 to the local lows of early 2016 (0.6850, 0.6810).
Technical indicators on D1 chart and above confirm the forecast: MACD indicates the preservation of the high volume of short positions, and Bollinger Bands are pointing down.
Support levels: 0.7200, 0.7180, 0.7150, 0.7100, 0.7070, 0.7010, 0.6950, 0.6900, 0.6850, 0.6810.
Resistance levels: 0.7250, 0.7300, 0.7330, 0.7410, 0.7480, 0.7600.
In this situation, short positions may be opened from the current level with targets at 0.7100, 0.6950, 0.6900 and stop loss at 0.7290.
Australian vs US Dollar
|Take Profit||0.7100, 0.6950, 0.6900|
|Support levels||0.6810, 0.6850, 0.6900, 0.6950, 0.7010, 0.7070, 0.7100, 0.7150, 0.7180, 0.7200, 0.7250, 0.7300, 0.7330, 0.7410, 0.7480, 0.7600|
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