The USD is strengthening since the opening of the European session and is slowly gaining back the losses of yesterday. The AUD weakening is exaggerated by its fall in the pair with the NZD.
After the publication of the FOMC Minutes, the Australian RB may resume the interest rates cut. Furthermore, the Yuan devaluation and the Chinese economy slowdown, commodities prices fall, including coal and iron ore, low overseas investments into the Australian economy and low inflation put pressure on the AUD/USD pair.
Support and resistance
The pair is moving towards year lows at 0.7240 and towards 2006 lows (0.7100-0.7000).
OsMA and Stochastic on the daily charts are turning to sales, while on the 4-hour chart they remain near the zero line.
Support levels: 0.7200 (psychologically important level), 0.7240, 0.7265.
Resistance levels: 0.7400, 0.7485, 0.7500, 0.7590.
Open short positions from the current levels and from 0.7370, 0.7350 with targets at 0.7265, 0.7240, 0.7200, 0.7100, 0.7000 and stop-loss at 0.7440.
Long positions can be opened after the price consolidation above the level of 0.7455 (with the appropriate indicators signals on the 4-hour and daily charts) with targets at 0.7590, 0.7710.