Current trend
Yesterday, AUD fell against USD, developing a downward trend and updating the lows since early 2017.
Today, the instrument is under pressure of poor macroeconomic data from China. In particular, the Retail Sales in July rose by 8.8% YoY, which is by 0.2% worse than analysts' expectations. Industrial Production in July maintained its previous growth rate of +6.0% YoY, while the market expected the index to accelerate to 6.3% YoY.
The pair continues to fall, and investors are waiting for July Australian labor market releases on Thursday. The "bearish" dynamic is supported by Westpac Consumer Confidence, which fell by 2.3% in August after growing by 3.9% last month.
Support and resistance
On the daily chart, Bollinger bands are steadily declining. The price range is expanding, but not as fast as the "bearish" trend is developing. MACD indicator decreases, keeping a strong sell signal (the histogram is below the signal line). Stochastic is pointing down, but is approaching its lows, which indicates the that the instrument is oversold.
At the moment, the indicators’ readings do not contradict the development of the "bearish" trend in the short term, but a corrective growth is possible in the next few days.
Resistance levels: 0.7222, 0.7260, 0.7290, 0.7322.
Support levels: 0.7200, 0.7175, 0.7159.
Trading tips
Long positions can be opened after the rebound from the level of 0.7200 and breakout of the levels of 0.7222–0.7230 with the target at 0.7290 or 0.7322. Stop loss is 0.7200–0.7180.
Short positions can be opened after the breakdown of the level of 0.7200 with the targets at 0.7159 or 0.7130–0.7120 and stop loss 0.7240–0.7250.
Implementation period: 2–3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.7230, 0.7235
Take Profit 0.7290, 0.7322
Stop Loss 0.7200, 0.7180
Key Levels 0.7159, 0.7175, 0.7200, 0.7222, 0.7260, 0.7290, 0.7322
Alternative scenario
Recommendation SELL STOP
Entry Point 0.7190
Take Profit 0.7159, 0.7130, 0.7120
Stop Loss 0.7240, 0.7250
Key Levels 0.7159, 0.7175, 0.7200, 0.7222, 0.7260, 0.7290, 0.7322
Yesterday, AUD fell against USD, developing a downward trend and updating the lows since early 2017.
Today, the instrument is under pressure of poor macroeconomic data from China. In particular, the Retail Sales in July rose by 8.8% YoY, which is by 0.2% worse than analysts' expectations. Industrial Production in July maintained its previous growth rate of +6.0% YoY, while the market expected the index to accelerate to 6.3% YoY.
The pair continues to fall, and investors are waiting for July Australian labor market releases on Thursday. The "bearish" dynamic is supported by Westpac Consumer Confidence, which fell by 2.3% in August after growing by 3.9% last month.
Support and resistance
On the daily chart, Bollinger bands are steadily declining. The price range is expanding, but not as fast as the "bearish" trend is developing. MACD indicator decreases, keeping a strong sell signal (the histogram is below the signal line). Stochastic is pointing down, but is approaching its lows, which indicates the that the instrument is oversold.
At the moment, the indicators’ readings do not contradict the development of the "bearish" trend in the short term, but a corrective growth is possible in the next few days.
Resistance levels: 0.7222, 0.7260, 0.7290, 0.7322.
Support levels: 0.7200, 0.7175, 0.7159.
Trading tips
Long positions can be opened after the rebound from the level of 0.7200 and breakout of the levels of 0.7222–0.7230 with the target at 0.7290 or 0.7322. Stop loss is 0.7200–0.7180.
Short positions can be opened after the breakdown of the level of 0.7200 with the targets at 0.7159 or 0.7130–0.7120 and stop loss 0.7240–0.7250.
Implementation period: 2–3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.7230, 0.7235
Take Profit 0.7290, 0.7322
Stop Loss 0.7200, 0.7180
Key Levels 0.7159, 0.7175, 0.7200, 0.7222, 0.7260, 0.7290, 0.7322
Alternative scenario
Recommendation SELL STOP
Entry Point 0.7190
Take Profit 0.7159, 0.7130, 0.7120
Stop Loss 0.7240, 0.7250
Key Levels 0.7159, 0.7175, 0.7200, 0.7222, 0.7260, 0.7290, 0.7322