Since opening today, the AUD is falling across the market and against the USD and JPY.
The pressure on the pair is going to increase, as the Australian economy looks weak amid falling commodities prices and a slowdown of the Chinese economy, its biggest trading partner. Furthermore, the near-zero GDP growth and low inflation in the country could force the RB of Australia to further cut its interest rate from the current 2%. At the same time, the safe-haven Yen positions are going to increase while financial markets remain unstable.
Support and resistance
On the 4-hour chart, the AUD/JPY pair bounced off the resistance levels at 87.15 (ЕМА200), 86.40 (ЕМА144) and falls towards 85.80 (ЕМА50), the breakdown of which would speed up the decline. The fall could continue towards the levels of 84.70, 83.80, 82.20 (August and year lows). At the same time, the breakout of the level of 88.15 (ЕМА50 on the daily chart) could reverse the downward trend.
OsMA and Stochastic on the 4-hour and daily charts signal sales.
Support levels: 85.80, 84.70, 83.80, 82.20.
Resistance levels: 86.40, 87.15, 88.15.
Place pending sell orders from the levels of 86.40, 87.15 with targets at 85.80, 84.70, 83.80 and stop-loss at 88.20, and from the level of 85.70 with targets at 84.70, 83.80 and stop-loss at 86.90.
Medium-term long positions can become viable after the price consolidation above the level of 88.15.