Current trend

The AUD/USD pair is strengthening due to the large fixing of profitable short positions.

Also, today the instrument was supported by the releases of the reports of the National Bank of Australia and the Australian Bureau of Statistics on the state of the business environment. Both reports were positive for the Australian economy. However, the escalation of the US-China trade conflict affects AUD as negatively as USD.

This week, the US investors will focus on the publication of October CPI data on Wednesday. The core rate is expected to grow from 0.1% MoM to 0.2% MoM and stay at 2.2% YoY. Note that the steady inflation rate of 2.0% is a condition for the Fed to raise the interest rate.

Today, at 17:00 (GMT+2), FOMC member Lael Brainard’s speech is scheduled, and at 21:00 (GMT+2), Federal Budget Balance release will be published in the United States. The projected deficit will provide short-term support for the pair.

Support and resistance

On the 4-hour chart, the instrument is strengthened at the bottom of Bollinger bands. Significant support level is 0.7165, the breakdown of which will be a strong signal for opening short positions. The indicator is directed downwards, and the price range remains wide, indicating a continuation of the downward trend. MACD histogram is in the negative zone, keeping a weak sell signal. Stochastic left the oversold area, generating a strong buy signal.

Resistance levels: 0.7213, 0.7236, 0.7280, 0.7304.

Support levels: 0.7186, 0.7165, 0.7135, 0.7114, 0.7075.

Trading tips

Short positions can be opened from the current level with the target at 0.7140 and stop loss 0.7240. Implementation period: 1–3 days.

Long positions can be opened above the level of 0.7240 with a target at 0.7300 and stop loss 0.7215. Implementation period: 2–4 days.

Australian vs US Dollar

BuySellSpread
0.718240.71704120

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point0.7197
Take Profit0.7140
Stop Loss0.7240
Support levels0.7075, 0.7114, 0.7135, 0.7165, 0.7186, 0.7213, 0.7236, 0.7280, 0.7304

Alternative scenario

RecommendationsBUY STOP
Entry Point0.7245
Take Profit0.7300
Stop Loss0.7215
Support levels0.7075, 0.7114, 0.7135, 0.7165, 0.7186, 0.7213, 0.7236, 0.7280, 0.7304
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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