Current trend
Last week the AUD/USD pair strengthened due to the investors' interest in risky assets.
Reduction of trade tension between the US and China was the main catalyst for the growth of investors’ optimism. Beijing's cautious stance prevented the escalation of the trade conflict and affected the instrument positively. Today, China's new economic sanctions on goods from the United States amounting to $60 billion come into effect, which can support the Australian currency.
Rising raw material prices contributed to the preservation of Australia's sovereign rating at AAA level, in addition, the rating agency S&P changed the outlook for the Australian economy from "negative" to "stable".
Today, there is a lack of important macroeconomic releases in both countries. It is likely that AUD will continue to moderately strengthen against USD, as the introduction of Chinese taxes supports the pair.
Support and resistance
On the 4-hour chart, the instrument is in the correction within the limited price range of 0.7265–0.7280. The key support is the middle line of Bollinger bands. The indicator reverses sideways, and the price range remains unchanged, indicating the continuation of the corrective dynamics. MACD histogram is in the positive area, keeping the buy signal. Stochastic does not give a clear signal for entering the market.
Resistance levels: 0.7282, 0.7307, 0.7339, 0.7363, 0.7392.
Support levels: 0.7268 0.7249, 0.7228, 0.7194, 0.7160, 0.7125, 0.7097.
Trading tips
Long positions can be opened above the level of 0.7285 with the target at 0.7360 and stop loss 0.7260. Implementation period: 1–2 days.
Short positions can be opened below the level of 0.7255 with the targets at 0.7205 and 0.7175 and the stop loss 0.7280. Implementation period: 1–3 days.
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.7290
Take Profit 0.7360
Stop Loss 0.7260
Key Levels 0.7097, 0.7125, 0.7160, 0.7194, 0.7228, 0.7249, 0.7268, 0.7282, 0.7307, 0.7339, 0.7363, 0.7392
Alternative scenario
Recommendation SELL STOP
Entry Point 0.7250
Take Profit 0.7205, 0.7175,
Stop Loss 0.7280
Key Levels 0.7097, 0.7125, 0.7160, 0.7194, 0.7228, 0.7249, 0.7268, 0.7282, 0.7307, 0.7339, 0.7363, 0.7392
Last week the AUD/USD pair strengthened due to the investors' interest in risky assets.
Reduction of trade tension between the US and China was the main catalyst for the growth of investors’ optimism. Beijing's cautious stance prevented the escalation of the trade conflict and affected the instrument positively. Today, China's new economic sanctions on goods from the United States amounting to $60 billion come into effect, which can support the Australian currency.
Rising raw material prices contributed to the preservation of Australia's sovereign rating at AAA level, in addition, the rating agency S&P changed the outlook for the Australian economy from "negative" to "stable".
Today, there is a lack of important macroeconomic releases in both countries. It is likely that AUD will continue to moderately strengthen against USD, as the introduction of Chinese taxes supports the pair.
Support and resistance
On the 4-hour chart, the instrument is in the correction within the limited price range of 0.7265–0.7280. The key support is the middle line of Bollinger bands. The indicator reverses sideways, and the price range remains unchanged, indicating the continuation of the corrective dynamics. MACD histogram is in the positive area, keeping the buy signal. Stochastic does not give a clear signal for entering the market.
Resistance levels: 0.7282, 0.7307, 0.7339, 0.7363, 0.7392.
Support levels: 0.7268 0.7249, 0.7228, 0.7194, 0.7160, 0.7125, 0.7097.
Trading tips
Long positions can be opened above the level of 0.7285 with the target at 0.7360 and stop loss 0.7260. Implementation period: 1–2 days.
Short positions can be opened below the level of 0.7255 with the targets at 0.7205 and 0.7175 and the stop loss 0.7280. Implementation period: 1–3 days.
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.7290
Take Profit 0.7360
Stop Loss 0.7260
Key Levels 0.7097, 0.7125, 0.7160, 0.7194, 0.7228, 0.7249, 0.7268, 0.7282, 0.7307, 0.7339, 0.7363, 0.7392
Alternative scenario
Recommendation SELL STOP
Entry Point 0.7250
Take Profit 0.7205, 0.7175,
Stop Loss 0.7280
Key Levels 0.7097, 0.7125, 0.7160, 0.7194, 0.7228, 0.7249, 0.7268, 0.7282, 0.7307, 0.7339, 0.7363, 0.7392