Current trend
At the beginning of the year Australian currency strengthened significantly against US dollar due to the decrease of investors' interest to the US currency and effective stimulation measures taken by RBA. Within less than 3 months the pair gained 600 points without showing any long downward corrections which may indicate the strength of the Australian currency. In the beginning of March USD gained support due to investors' demand in view of positive fundamental data from the USA. At that time investors started to actively sell AUD and preferred the US currency which led to the fall of the pair. Unable to break through the strong level of 0.7490, the pair regained all positions and made yet another attempt to test the key resistance level of 0.7750. In the end of March the pair decreased to the levels of 0.7490, 0.7470 once more. Now AUD is moving up against USD again due to negative data from the main US economy sectors and comments by President Trump. Yesterday all main US indexes were weak which supported the pair. Today special attention should be paid to retail sales and US consumer prices index.
Support and resistance
Although the US currency is decreasing, the tendency is still downwardc which indicates the possibility of reversal and movement to new local minimums of the current year in the near future. In the short term the prospect of movement to wide lateral consolidation is very likely. This is confirmed by technical indicators: MACD shows considerable decrease of volumes in the pair, and Bollinger Bands are fixed in a wide lateral position.
Support levels: 0.7490, 0.7470, 0.7370, 0.7240, 0.7160, 0.7000.
Resistance levels: 0.7610, 0.7630, 0.7680, 0.7750, 0.7830.
Trading tips
Short positions may be opened from the borders of the range and key resistance levels of 0.7630, 0.7680, 0.7750 with targets at 0.7470, 0.7430. Stop-loss may be placed at 0.7780, 0.7810.
At the beginning of the year Australian currency strengthened significantly against US dollar due to the decrease of investors' interest to the US currency and effective stimulation measures taken by RBA. Within less than 3 months the pair gained 600 points without showing any long downward corrections which may indicate the strength of the Australian currency. In the beginning of March USD gained support due to investors' demand in view of positive fundamental data from the USA. At that time investors started to actively sell AUD and preferred the US currency which led to the fall of the pair. Unable to break through the strong level of 0.7490, the pair regained all positions and made yet another attempt to test the key resistance level of 0.7750. In the end of March the pair decreased to the levels of 0.7490, 0.7470 once more. Now AUD is moving up against USD again due to negative data from the main US economy sectors and comments by President Trump. Yesterday all main US indexes were weak which supported the pair. Today special attention should be paid to retail sales and US consumer prices index.
Support and resistance
Although the US currency is decreasing, the tendency is still downwardc which indicates the possibility of reversal and movement to new local minimums of the current year in the near future. In the short term the prospect of movement to wide lateral consolidation is very likely. This is confirmed by technical indicators: MACD shows considerable decrease of volumes in the pair, and Bollinger Bands are fixed in a wide lateral position.
Support levels: 0.7490, 0.7470, 0.7370, 0.7240, 0.7160, 0.7000.
Resistance levels: 0.7610, 0.7630, 0.7680, 0.7750, 0.7830.
Trading tips
Short positions may be opened from the borders of the range and key resistance levels of 0.7630, 0.7680, 0.7750 with targets at 0.7470, 0.7430. Stop-loss may be placed at 0.7780, 0.7810.