AUD/USD: Australian dollar is weakening
Current trend
Yesterday AUD fell and returned to the area of lows, renewed in the end of the last trading week. Today the AUD/USD pair renewed the minimum since 2017, June, 13, due to the pressure of the RBA meeting on November, 7, report publication.
As expected, the report reflects the prudent approach of the regulator, which is concerned of the further slowing of economical growth and inflation pressure. However, as RBA is consistent in its action, the investors’ expectations are positive. Australian economy’s employment and export indices are positive, which should improve key GDP and inflation indices, strengthened by prevention of the strong growth of the national currency.
Today the traders are focused on RBA's Governor Philip Lowe Speech at 11:05 (GMT+2). After US trading session opening the US National Activity Index, Retail Sales data and Existing Home Sales statistic are worth investors’ attention.
Support and resistance
On the daily chart Bollinger Bands are falling. The price range is widening from below. The weakening of the “bearish” pressure or correctional growth development is expected in the short term.
MACD is falling, keeping quite steady sell signal (the histogram is below the signal line). It’s better to keep current short positions in the short or very short term, but not to open new ones until new confirmations are received.
Stochastic is slightly decreasing, but it is near its lows, which confirms the correction growth possibility in the short term.
Resistance levels: 0.7566, 0.7586, 0.7623, 0.7636.
Support levels: 0.7530, 0.7500, 0.7469.
Trading tips
Long positions can be opened after the reversal around the level of 0.7530 and rebound with the targets at 0.7636–0.7664. Stop loss is 0.7475. Implementation period: 2 days.
The steady breakdown 0.7530 will become a signal to open short positions with the targets at 0.7450–0.7400. Stop loss is 0.7590. Implementation period: 2–3 days.
Yesterday AUD fell and returned to the area of lows, renewed in the end of the last trading week. Today the AUD/USD pair renewed the minimum since 2017, June, 13, due to the pressure of the RBA meeting on November, 7, report publication.
As expected, the report reflects the prudent approach of the regulator, which is concerned of the further slowing of economical growth and inflation pressure. However, as RBA is consistent in its action, the investors’ expectations are positive. Australian economy’s employment and export indices are positive, which should improve key GDP and inflation indices, strengthened by prevention of the strong growth of the national currency.
Today the traders are focused on RBA's Governor Philip Lowe Speech at 11:05 (GMT+2). After US trading session opening the US National Activity Index, Retail Sales data and Existing Home Sales statistic are worth investors’ attention.
Support and resistance
On the daily chart Bollinger Bands are falling. The price range is widening from below. The weakening of the “bearish” pressure or correctional growth development is expected in the short term.
MACD is falling, keeping quite steady sell signal (the histogram is below the signal line). It’s better to keep current short positions in the short or very short term, but not to open new ones until new confirmations are received.
Stochastic is slightly decreasing, but it is near its lows, which confirms the correction growth possibility in the short term.
Resistance levels: 0.7566, 0.7586, 0.7623, 0.7636.
Support levels: 0.7530, 0.7500, 0.7469.
Trading tips
Long positions can be opened after the reversal around the level of 0.7530 and rebound with the targets at 0.7636–0.7664. Stop loss is 0.7475. Implementation period: 2 days.
The steady breakdown 0.7530 will become a signal to open short positions with the targets at 0.7450–0.7400. Stop loss is 0.7590. Implementation period: 2–3 days.