AUD/USD: in contracting triangle

FX:AUDUSD   Australian Dollar/U.S. Dollar
12 0 0
Current trend

Yesterday, the Federal Reserve raised US interest rates. This decision confirms the Fed is confident that US economic recovery is sustainable and suggests the Regulator has a favorable outlook for the global economy.
RBA, in its turn, is likely to keep loose monetary policy due to weak inflation . Moreover, the Australian Dollar             is under pressure from a continuous fall in commodity prices, in iron ore price in particular, as Australia remains the largest exporter of this raw material. Therefore, the AUD/USD             pair tends to continue declining.

Support and resistance

On the daily chart , a contracting triangle has formed with the lower border near the level of 0.7190 and the upper border at 0.7335 (EMA144). The price is likely to breakdown the lower border of the triangle and continue declining to 0.7100, 0.7030, 0.6980 and 0.6910 (year lows).

In case of a correctional growth, the price might reach the level of 0.7335 (EMA144 on the daily chart ). An upward trend would resume only after the consolidation above the levels of 0.7465 (EMA200 on the daily chart ) and 0.7510 (23.6% Fibonacci).

Support levels: 0.7215, 0.7170, 0.7100, 0.7030, 0.6980, 0.6910.
Resistance levels: 0.7300, 0.7350, 0.7400, 0.7500.

Trading tips

Short positions can be opened from the current level with targets at 0.7170, 0.7150, 0.7110, 0.7090, 0.7030, 0.6950, 0.6910 and stop-loss at 0.7250.
Long positions can be opened from the level of 0.7260 with targets at 0.7300, 0.7335, 0.7410, 0.7450, 0.7490 and stop-loss at 0.7190.
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