Current trend

This week, USD is strengthening against major competitors due to strong macroeconomic data, as AUD, being one of the weakest currencies is currently trading at 2-year lows.

On Wednesday, the pair was under significant pressure of key data on the US labor market, which were significantly better than the forecast. In addition, the Fed's “hawkish” rhetoric, a significant increase in 10-year bonds’ yields, as well as an increase in Factory orders and a record acceleration in the services sector provided USD growth.

The positive statistics of Australia was not able to influence the downward trend, since the country's economy is extremely vulnerable to the US-Chinese trade conflict, and the slowdown of the Chinese economy inevitably leads to a slowdown in the Australian one.

Today at 14:30 (GMT+2) a number of the most important indicators on the American labor market will be published. Given the strong preliminary values, market participants expect a further decline in the pair.

Support and resistance

On the 4-hour chart, the instrument is testing the strong support at 0.7065. The indicator is pointing down, and the price range has expanded, reflecting a continuation of the downward trend. MACD histogram has reached a minimum in the negative zone, holding a strong sell signal. Stochastic is preparing to leave the oversold area, a buy signal can be formed during the day.

Resistance levels: 0.7098, 0.7136, 0.7165, 0.7198, 0.7230, 0.7243.

Support levels: 0.7064 0.7000, 0.6963, 0.6922.

Trading tips

Short positions can be opened below the level of 0.7055 with the targets at 0.7000, 0.6960 and stop loss at 0.7090.

Long positions can be opened above the level of 0.7106 with the target at 0.7155 and stop loss at the level of 0.7085.

Implementation period: 1 day.

Australian vs US Dollar

BuySellSpread
0.733740.73254120

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point0.7050
Take Profit0.7000, 0.6960
Stop Loss0.7090
Support levels0.6922, 0.6963, 0.7000, 0.7064, 0.7098, 0.7136, 0.7165, 0.7198, 0.7230, 0,7243

Alternative scenario

RecommendationsBUY STOP
Entry Point0.7110
Take Profit0.7155
Stop Loss0.7085
Support levels0.6922, 0.6963, 0.7000, 0.7064, 0.7098, 0.7136, 0.7165, 0.7198, 0.7230, 0,7243
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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