Current trend

On Thursday, AUD showed growth against the background of the weakness of USD caused by a decline in the US stock market, as well as in the absence of important macroeconomic releases in Australia.

The US currency was under pressure from weak statistics on inflation and the number of initial jobless claims, published on Thursday in the US. Core CPI was 2.2%, which was lower than the forecast of 2.3%. Initial Jobless Claims number exceeded the forecast, reaching 214K applications, which indicates a weak labor market.

Today, the pair has slowed due to the decline in the number of home loans, according to the Australian Bureau of Statistics. The market is expected to be moderately volatile. Investors should pay attention to the release of the Michigan Consumer Sentiment Index (16:00 GMT+2), and of Baker Hughes US Oil Rig Count (20:00 GMT+2).

Support and resistance

On the H4 chart the instrument is trading at the upper line of Bollinger Bands. MACD histogram is in the positive area with its volumes minimal.

Resistance levels: 0.7130, 0.7165, 0.7200, 0.7235, 0.7250.

Support levels: 0.7095, 0.7065, 0.7040.

Trading tips

Long positions may be opened from the current level with target at 0.7165 and stop loss at 0.7095.

Short positions may be opened from the level of 0.7090 with target at 0.7050 and stop loss at 0.7120.

Implementation period: 1-3 days.

Australian vs US Dollar

BuySellSpread
0.727970.7277621

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point0.7115
Take Profit0.7165
Stop Loss0.7095
Support levels0.7040, 0.7065, 0.7095, 0.7130, 0.7165, 0.7200, 0.7235, 0.7250

Alternative scenario

RecommendationsSELL STOP
Entry Point0.7090
Take Profit0.7050
Stop Loss0.7120
Support levels0.7040, 0.7065, 0.7095, 0.7130, 0.7165, 0.7200, 0.7235, 0.7250
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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