Current trend

Today, the instrument has slightly strengthened against the background of the growth of the Australian index of leading economic indicators.

On Tuesday, the minutes of the last meeting of the Reserve Bank of Australia were published; according to them, the country's economy continues to grow even faster than expected. RBA's head, Philip Lowe, confirmed yesterday that the regulator will maintain the current monetary policy.

At the same time, commodity currencies are under pressure, as the US and China still cannot agree on trade disputes. The parties did not make a joint statement on the results of the APEC meeting, which was held this weekend, so the instrument is still under pressure.

Today at 15:30 (GMT+2), data on the US labor and real estate market, as well as on orders for durable goods will be published. Confirming a positive outlook for employment and sales growth in the existing homes market will contribute to a decrease in the instrument to 0.7150–0.7110.

Support and resistance

On the H4 chart the instrument is trading near the lower line of Bollinger Bands. Significant support is the level of 0.7210, the breakdown of which will form a signal to open positions for purchase. The indicator has corrected horizontally, and the price range widened, indicating the continuation of the downtrend. MACD histogram is in the negative zone keeping a weak sale signal. Stochastic is leaving the oversold zone having formed a strong buy signal.

Resistance levels: 0.7250, 0.7282, 0.7313, 0.7345.

Support levels: 0.7210, 0.7180, 0.7157, 0.7138, 0.7109.

Trading tips

Short positions may be opened from the current level with target at 0.7150 and stop loss at 0.7255.

Long positions may be opened above 0.7260 with target at 0.7305 and stop loss at 0.7240.

Implementation time: 1-2 days.

Australian vs US Dollar

BuySellSpread
0.718650.718425

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point0.7232
Take Profit0.7150
Stop Loss0.7255
Support levels0.7109, 0.7138, 0.7157, 0.7180, 0.7210, 0.7250, 0.7282, 0.7313, 0.7345

Alternative scenario

RecommendationsBUY STOP
Entry Point0.7265
Take Profit0.7305
Stop Loss0.7240
Support levels0.7109, 0.7138, 0.7157, 0.7180, 0.7210, 0.7250, 0.7282, 0.7313, 0.7345
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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