In anticipation of tomorrow’s meeting of RBA on interest rate, the pair AUD/USD has been declining since the opening of today’s trading day.

The decline was caused by strong data on the US labor market and other positive US macro-economic statistics, released last Friday and by the decline in oil prices amid last Friday’s statement by the crone prince of Saudi Arabia Mohammed bin Salman. The price stated the conditions on which the country would sign agreement to reduce oil production.

On the daily chart the indicators OsMA and Stochastic are reversing towards the sell positions. On 4-hour chart the indicators also recommend to open short positions. There is also a SELL signal from the movement with the short periods 5-7-13.

In case of the decline the pair can go to support level of 0.7610 (ЕМА50), 0.7560 (lower line of the ascending channel on 4-hour chart), 0.7510 (Fibonacci 23.6% to the last wave of decline since July 2014), and 0.7455 (ЕМА200).

However, in the medium-term the pair can return to downtrend only after consolidation of the price below the level of 0.7380 (ЕМА200), 0.7330 (ЕМА144 on the daily chart).

In case of the rise, the pair AUD/USD may reach resistance level of 0.7875 (Fibonacci 38.2%), 0.8170 (Fibonacci 50%, ЕМА144 on the weekly chart, ЕМА200 on the monthly chart).

Movement direction in the AUD will depend on the tomorrow’s interest rate decision by the RBA, on the comments, which the bank will make after the meeting, and on the position of the USD on the financial markets.

Support levels: 0.7610, 0.7560, 0.7510, 0.7455, 0.7380, 0.7330 and 0.7300.
Resistance levels: 0.7680, 0.7875 and 0.8170.

Trading tips

Sell Stop: 0.7580. Stop-Loss: 0.7630. Take-Profit: 0.7560, 0.7510, 0.7430, 0.7360 and 0.7300.
Buy Stop: 0.7650. Stop-Loss: 0.7590. Take-Profit: 0.7680, 0.7750, 0.7875 and 0.8170.


AUD/USD: in anticipation of tomorrow’s meeting of RBA

AUD/USD: in anticipation of tomorrow’s meeting of RBA




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.



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