AUD/USD: Australian dollar is falling
Current trend
Yesterday, AUD decreased against USD, continuing the development of the "bearish" dynamics, formed at the end of last week. Despite USD corrective mood, AUD could not leave the short-term trend.
Today, the decline continues, as a result of which the instrument has renewed the lows since June 2017. Traders are focused on RBA Meeting's Minutes and 2018 Q1 House Price Index.
The RBA is dissatisfied with the high exchange rate of the national currency and noted that its further strengthening will slow inflation and economic growth. The main forecasts for GDP and inflation level remained unchanged. It was also noted that the employment market has recently experienced some difficulties, but there are positive trends in general.
Support and resistance
On the daily chart, Bollinger bands are actively falling. The price range is expanding, but not as fast as the "bearish" dynamics is developing. MACD decreases, maintaining a strong sell signal (the histogram is below the signal line). Stochastic has turned horizontally, reaching its minimum levels and indicating that AUD will be oversold in the short term.
It is better to keep part of current short positions in the short and very short term. The appearance of corrective growth is possible.
Resistance levels: 0.7424, 0.7453, 0.7474, 0.7500.
Support levels: 0.7392, 0.7372, 0.7355.
Trading tips
Long positions can be opened after a rebound from the level of 0.7392 and breakout of the level of 0.7424 with the target at 0.7500 and stop loss 0.7390–0.7380. Implementation period: 2–3 days.
Short positions can be opened after a breakdown of the level of 0.7392 to 0.7355 or 0.7300 and stop loss 0.7425. Implementation period: 1–2 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.7430
Take Profit 0.7500
Stop Loss 0.7390, 0.7380
Key Levels 0.7355, 0.7372, 0.7392, 0.7424, 0.7453, 0.7474, 0.7500
Alternative scenario
Recommendation SELL
Entry Point 0.7364
Take Profit 0.7300
Stop Loss 0.7425
Key Levels 0.7355, 0.7372, 0.7392, 0.7424, 0.7453, 0.7474, 0.7500
Yesterday, AUD decreased against USD, continuing the development of the "bearish" dynamics, formed at the end of last week. Despite USD corrective mood, AUD could not leave the short-term trend.
Today, the decline continues, as a result of which the instrument has renewed the lows since June 2017. Traders are focused on RBA Meeting's Minutes and 2018 Q1 House Price Index.
The RBA is dissatisfied with the high exchange rate of the national currency and noted that its further strengthening will slow inflation and economic growth. The main forecasts for GDP and inflation level remained unchanged. It was also noted that the employment market has recently experienced some difficulties, but there are positive trends in general.
Support and resistance
On the daily chart, Bollinger bands are actively falling. The price range is expanding, but not as fast as the "bearish" dynamics is developing. MACD decreases, maintaining a strong sell signal (the histogram is below the signal line). Stochastic has turned horizontally, reaching its minimum levels and indicating that AUD will be oversold in the short term.
It is better to keep part of current short positions in the short and very short term. The appearance of corrective growth is possible.
Resistance levels: 0.7424, 0.7453, 0.7474, 0.7500.
Support levels: 0.7392, 0.7372, 0.7355.
Trading tips
Long positions can be opened after a rebound from the level of 0.7392 and breakout of the level of 0.7424 with the target at 0.7500 and stop loss 0.7390–0.7380. Implementation period: 2–3 days.
Short positions can be opened after a breakdown of the level of 0.7392 to 0.7355 or 0.7300 and stop loss 0.7425. Implementation period: 1–2 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.7430
Take Profit 0.7500
Stop Loss 0.7390, 0.7380
Key Levels 0.7355, 0.7372, 0.7392, 0.7424, 0.7453, 0.7474, 0.7500
Alternative scenario
Recommendation SELL
Entry Point 0.7364
Take Profit 0.7300
Stop Loss 0.7425
Key Levels 0.7355, 0.7372, 0.7392, 0.7424, 0.7453, 0.7474, 0.7500