Current trend

Yesterday, the trading instrument showed a moderate decline, despite the reduction in unemployment in Australia and the growth of the Chinese stock market.

As there is a lack of key economic releases, the movement of the pair is of technical nature. AUD remains under a long-term pressure from the US-China trade conflict. According to experts, its further escalation may reduce the country's GDP by 0.3% by 2022, which corresponds to a loss of USD 36 billion. In addition, today's speeches of the RBA officials were cautious, uninformative and could not break the pair's “bearish” trend.

Today at 14:55 (GMT+2), Redbook retail sales data will be published in the US, and at 19:30 (GMT+2) the speech by the Fed representative Raphael Bostic is scheduled.

Support and resistance

On the H4 chart, the instrument corrected to the bottom line of Bollinger Bands. The nearest significant support level is 0.7058. The indicator is reversing downwards, and the price range is widening, indicating the continuation of the downtrend. MACD histogram is in the negative zone keeping the sale signal. Stochastic has entered the oversold area; a buy signal can be generated during the day.

Resistance levels: 0.7100, 0.7130, 0.7152, 0.7189, 0.7218, 0.7258, 0.7299.

Support levels: 0.7058, 0.7033, 0.7021, 0.7005.

Trading tips

Short positions could be opened below 0.7050 with targets at 0.7015, 0.7000 and stop loss at 0.7065.

Long positions may be opened above 0.7075 with target at 0.7130 and stop loss at 0.7045.

Implementation time: 1-2 days.

Australian vs US Dollar

BuySellSpread
0.727660.7274422

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point0.7045
Take Profit0.7015, 0.7000
Stop Loss0.7065
Support levels0.7005, 0.7021, 0.7033, 0.7058, 0.7100, 0.7130, 0.7152, 0.7189, 0.7218, 0.7258, 0.7299

Alternative scenario

RecommendationsBUY STOP
Entry Point0.7080
Take Profit0.7130
Stop Loss0.7045
Support levels0.7005, 0.7021, 0.7033, 0.7058, 0.7100, 0.7130, 0.7152, 0.7189, 0.7218, 0.7258, 0.7299
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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