Review and dynamics
Following decision to lower interest rate by RBA at the beginning of May, the pair fell by over 240 points. After the rise on 20 April to the level of (Fibonacci 38.2%), the pair fell by almost 490 points. The decline in the pair AUD/USD will continue.
The pair has broken out important support levels of 0.7445 (Fibonacci 23.6%) and 0.7415 (ЕМА200, ЕМА144 on the daily chart) and is now declining to support level of 0.7200 (lower limit of the ascending channel on the daily chart).
Since this January the pair was undergoing upward correction in the ascending channel on the daily chart. The pair AUD/USD rose by 14% to the level of 0.7820. However, following the decision to lower interest rate adopted by RBA upward correction has stopped.
Meanwhile, the pair is below the level of 0.7415. Downtrend continues. Breakout below the levels of 0.7365, 0.7330 will lead the pair AUD/USD to support levels of 0.7200 and 0.7140 and bring it back to the downtrend.
On the weekly, daily and 4-hour charts the indicators OsMA and Stochastic recommend to open short positions.
If the price exceeds the level of 0.7445, the pair AUD/USD will continue to rise in the ascending channel on the daily chart with the upper limit at the level of 0.7820 (Fibonacci 38.2%), 0.7900 (highs of February and March 2015) and 0.8130 (ЕМА144 on the daily chart and Fibonacci 50%).
Support levels: 0.7330, 0.7300, 0.7200 and 0.7140.
Resistance levels: 0.7365, 0.7415, 0.7445, 0.7500, 0.7545, 0.7600, 0.7680, 0.7720 and 0.7820.
Sell Stop: 0.7320. Stop-Loss: 0.7370. Take-Profit: 0.7300, 0.7200, 0.7140 and 0.7100.
Buy Stop: 0.7390. Stop-Loss: 0.7350. Take-Profit: 0.7415, 0.7445, 0.7500, 0.7545, 0.7600, 0.7720, 0.7820, 0.7900, 0.8000 and 0.8130.
The price has broken out support level
The indicators give signals for opening short positions