Current trend

On Friday, the AUD/USD pair moved horizontally. September Australian Retail Sales release was poorer than market expectations. The indicator fell from 0.3% to 0.2% MoM and from 1.0% to 0.2% QoQ due to insufficient growth in incomes of Australian citizens and a decline in the country's real estate market. USD was supported by the release of positive for the American economy data from the labor market: in October, Nonfarm Payrolls rose from 118K to 250K. Average wages grew from 2.8% to 3.1% YoY. The Unemployment Rate remained the same – 3.7%.

Today, Markit and ISM service PMI releases may affect the pair’s dynamics, moderate volatility is expected on the market.

Support and resistance

On the daily chart, the instrument was corrected to the upper border of Bollinger bands, the price range was expanded, indicating a possible development of the correction. MACD histogram is in the negative area, maintaining a weak signal to open short positions.

Resistance levels: 0.7200, 0.7238, 0.7258, 0.7290, 0.7314, 0.7340, 0.7381.

Support levels: 0.7181, 0.7158, 0.7130, 0.7103, 0.7085, 0.7065, 0.7040, 0.7020.

Trading tips

Long positions can be opened from the level of 0.7200 with the target at 0.7250 and stop loss 0.7170.

Short positions can be opened from the level of 0.7158 with the target at 0.7103 and stop loss 0.7190.

Implementation period: 1–3 days.

Australian vs US Dollar

BuySellSpread
0.727970.7277621

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point0.7200
Take Profit0.7250
Stop Loss0.7170
Support levels0.7020, 0.7040, 0.7065, 0.7085, 0.7103, 0.7130, 0.7158, 0.7181, 0.7200, 0.7238, 0.7258, 0.7290, 0.7314, 0.7340, 0.7381

Alternative scenario

RecommendationsSELL STOP
Entry Point0.7158
Take Profit0.7103
Stop Loss0.7190
Support levels0.7020, 0.7040, 0.7065, 0.7085, 0.7103, 0.7130, 0.7158, 0.7181, 0.7200, 0.7238, 0.7258, 0.7290, 0.7314, 0.7340, 0.7381
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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