Review and forecast
Australian economy is under pressure from several fundamental factors. Since beginning of May the pair AUD/USD fell by over 400 points.
The pair broke down important support levels of 0.7445 (Fibonacci 23.6%), 0.7415 (ЕМА200 on the daily chart) and continues to decline.
The price broke down the lower line of the ascending channels (the level of 0.7200) on two charts: daily and weekly.
On the weekly, daily and 4-hour charts the indicators OsMA and Stochastic suggest to open short positions. The indicators on the monthly chart are also reversing towards the short positions.
It is likely that the decline in the pair will continue.
At the moment the pair is below the level of 0.7415.
Medium-term long positions can be opened, if the price goes above the level of 0.7445.
Meanwhile we recommend to open short positions.
Support levels: 0.7140, 0.7100 and 0.7000.
Resistance levels: 0.7200, 0.7260, 0.7290, 0.7355, 0.7390, 0.7415 and 0.7445.
Sell on the market. Stop-Loss: 0.7210. Take-Profit: 0.7140, 0.7100 and 0.7000.
Buy Stop: 0.7310. Stop-Loss: 0.7260. Take-Profit: 0.7415, 0.7445, 0.7500, 0.7545 and 0.7600.
Indicators are in the side of sellers
Braking down the channel line