Current trend

Last week the AUD/USD pair continued growing.

The pair was supported by the USD weakness amid substantially reduced expectations on an interest rate hike in the US before the end of the year, positive news from the Asian stock markets and strengthened oil and iron ore prices.

At the same time, the pair was pressured by poor Home Loans data from Australia and weak Trade Balance statistics. Trade deficit for August exceeded 3 billion Australian Dollars, which was worse than forecasts.

Support and resistance

Bollinger Bands on the daily chart is growing, while the price range is widening. At the same time, the indicator has formed a signal for correctional sales. MACD is growing and giving a strong buy signal. Stochastic reached its critical levels in the overbought zone thus indicating a possibility of a downward correction in the near future.

The indicators recommend considering short positions.

Support levels: 0.7300 (local low), 0.7270, 0.7234, 0.7200, 0.7160 (8 August low), 0.7128, 0.7100, 0.7069.

Resistance levels: 0.7347 (local high), 0.7366, 0.7400, 0.7438 (11 August high), 0.7448 (21 July high), 0.7500 (beginning of July high).

Trading tips

Long positions can be opened after the breakout of the level of 0.7329 with the target at 0.7420 and stop-loss at 0.7300. Validity – 2-3 days.

Short positions can be opened after the price reverse near the level of 0.7347 with the target at 0.7200 and stop-loss at 0.7380. Validity – 2-4 days.

AUD/USD: pair is growing

AUD/USD: pair is growing

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

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