Our previous review on the pair AUD/USD indicated that the pair AUD/USD had reached resistance level of 0.7323 after the news that interest rate in Australia was left unchanged at the level of 2.0%.
In case of breakdown of the resistance level of 0.7323, the pair can grow up to 0.7415 (ЕМА50 on the weekly chart) and 0.7510 (Fibonacci 23.6%).
It seems that our forecast proved to be correct. At the moment, the pair AUD/USD is traded slightly above the level of 0.7510 (Fibonacci 23.6%). Although OsMA and Stochastic give buy signals, on the four-hour and daily charts the indicators are reversing towards the short positions.
The main news of this week is interest rate decision by the US Fed on 16 March. If the rate is will be raised, the USD will go up all over the market and the pair will go down.
However, most of the market participants believe that the US fed will not take this step. Even if it does not happen, the pair AUD/USD can still go down (see fundamental analysis on the pair AUD/USD). The nearest targets of decline can be the levels of 0.7415 (ЕМА50 on the weekly chart), 0.7345 (ЕМА200 on the daily chart) and 0.7265 (ЕМА144). Consolidation of the price below the level of 0.7510 will become a signal of the decline in the pair.
In case of the downward movement the next target will be the level of .6910 (middle of the descending channel on the daily chart and Fibonacci retracement of 0% to the last wave of decline since July 2014). Further targets are 0.6600 (bottom limit of the descending channel on the daily chart), 0.6350 and 0.6000 (lows of 2008 – 2009).
Otherwise, the pair AUD/USD can rise to resistance level of 0.7875 (Fibonacci 38.2%) and 0.8170 (ЕМА144 on the weekly chart).
Support levels: 0.7510, 0.7415, 0.7345, 0.7265 and 0.7140.
Resistance levels: 0.7875 and 0.8170.
Sell Stop: 0.7490. Stop-Loss: 0.7550. Take-Profit: 0.7415, 0.7345, 0.7265, 0.7200 and 0.7140.
Buy Stop: 0.7610. Stop-Loss: 0.7540. Take-Profit: 0.7875 and 0.8170.