Current trend

Yesterday the pair fell slightly but managed to renew its local highs amid traders taking profit on long US Dollar positions prior to New Year.

This week low volatility is expected. Attention needs to be paid to the ECB Monetary Policy Meeting Accounts, due on Thursday. However, considering the publication comes out on New Year’s Eve it is unlikely to increase activity on the market.

Support and resistance

Bollinger Bands on the daily chart is moving horizontally while the price range is slowly widening from the top. MACD is growing and giving a weak buy signal. Stochastic is in the overbought zone and trying to turn down.

The indicators recommend waiting for clearer trading signals.

Support levels: 0.7234, 0.7200 (22 December low), 0.7183, 0.7158, 0.7128, 0.7100 (17 December lows), 0.7068.

Resistance levels: 0.7259 (local high), 0.7282 (yesterday high), 0.7300, 0.7334 (10 December high), 0.7363, 0.7384 (4 December high), 0.7400.

Trading tips

Long positions can be opened after the breakout of the level of 0.7280 (with the appropriate indicators signals) with targets at 0.7320, 0.7345 and stop-loss at 0.7240. Validity – 2-3 days.

Short positions can be opened after the breakdown of the level of 0.7255 with targets at 0.7215, 0.7170 and stop-loss at 0.7280. Validity – 2-3 days.

AUD/USD: pair slows growth

AUD/USD: pair slows growth

The material published on this page is produced by LiteForex 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.

Follow us in social networks!
Live Chat
Leave feedback