Current trend

Since the beginning of this week, the pair is strengthening, despite the fall of the Chinese stock market and currency.

This week, no significant macroeconomic reports were published in Australia. The news background from the US was contradictory, and there were no fundamental reasons for the short-term strengthening of the pair. The fall of China's stock market should have led to a decrease in AUD and NZD, but this did not happen, indicating a strong oversold of commodity currencies. At the same time, pressure on AUD persists against the backdrop of the US trade war with China and the “hawkish” attitude of the Fed.

Today at 14:30 (GMT+2) the data on the producer price index will be published in the US. Tomorrow at 00:00 and 00:30 (GMT+2) speeches by representatives of the American and Australian regulators are scheduled. In addition, on Thursday at 14:30 (GMT+2), the release of data on the US labor market and consumer prices is scheduled. Investors expect a significant decline of the pair by the end of this week.

Support and resistance

In the H4 chart, the instrument could not break out the resistance level of 0.7125 and started to decrease. Bollinger Bands are trying to reverse upwards, and the price range expanded, indicating that the growth will continue. MACD histogram is correcting near the zero line. Stochastic is about to leave the overbought area; a sell signal can be formed during the day.

Resistance levels: 0.7123, 0.7143, 0.7175, 0.7197, 0.7227.

Support levels: 0.7092, 0.7075, 0.7055, 0.7032.

Trading tips

Short positions may be opened from the level of 0.7120 with targets at 0.7050, 0.7030 and stop loss at 0.7145.

Long positions may be opened above 0.7145 with target at 0.7180 and stop loss at 0.7130.

Implementation period: 1-2 days.

Australian vs US Dollar

BuySellSpread
0.733740.73254120

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point0.7120
Take Profit0.7050, 0.7030
Stop Loss0.7145
Support levels0.7032, 0.7055, 0.7075, 0.7092, 0.7123, 0.7143, 0.7175, 0.7197, 0.7227

Alternative scenario

RecommendationsBUY STOP
Entry Point0.7150
Take Profit0.7180
Stop Loss0.7130
Support levels0.7032, 0.7055, 0.7075, 0.7092, 0.7123, 0.7143, 0.7175, 0.7197, 0.7227
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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