Current trend
Yesterday, the trading instrument showed a moderate decline, despite the reduction in unemployment in Australia and the growth of the Chinese stock market.
As there is a lack of key economic releases, the movement of the pair is of technical nature. AUD remains under a long-term pressure from the US-China trade conflict. According to experts, its further escalation may reduce the country's GDP by 0.3% by 2022, which corresponds to a loss of USD 36 billion. In addition, today's speeches of the RBA officials were cautious, uninformative and could not break the pair's “bearish” trend.
Today at 14:55 (GMT+2), Redbook retail sales data will be published in the US, and at 19:30 (GMT+2) the speech by the Fed representative Raphael Bostic is scheduled.
Support and resistance
On the H4 chart, the instrument corrected to the bottom line of Bollinger Bands. The nearest significant support level is 0.7058. The indicator is reversing downwards, and the price range is widening, indicating the continuation of the downtrend. MACD histogram is in the negative zone keeping the sale signal.
Resistance levels: 0.7100, 0.7130, 0.7152, 0.7189, 0.7218, 0.7258, 0.7299.
Support levels: 0.7058, 0.7033, 0.7021, 0.7005.
Trading tips
Short positions could be opened below 0.7050 with targets at 0.7015, 0.7000 and stop loss at 0.7065.
Long positions may be opened above 0.7075 with target at 0.7130 and stop loss at 0.7045.
Implementation time: 1-2 days.
Scenario
Timeframe Intraday
Recommendation SELL STOP
Entry Point 0.7045
Take Profit 0.7015, 0.7000
Stop Loss 0.7065
Key Levels 0.7005, 0.7021, 0.7033, 0.7058, 0.7100, 0.7130, 0.7152, 0.7189, 0.7218, 0.7258, 0.7299
Alternative scenario
Recommendation BUY STOP
Entry Point 0.7080
Take Profit 0.7130
Stop Loss 0.7045
Key Levels 0.7005, 0.7021, 0.7033, 0.7058, 0.7100, 0.7130, 0.7152, 0.7189, 0.7218, 0.7258, 0.7299
Yesterday, the trading instrument showed a moderate decline, despite the reduction in unemployment in Australia and the growth of the Chinese stock market.
As there is a lack of key economic releases, the movement of the pair is of technical nature. AUD remains under a long-term pressure from the US-China trade conflict. According to experts, its further escalation may reduce the country's GDP by 0.3% by 2022, which corresponds to a loss of USD 36 billion. In addition, today's speeches of the RBA officials were cautious, uninformative and could not break the pair's “bearish” trend.
Today at 14:55 (GMT+2), Redbook retail sales data will be published in the US, and at 19:30 (GMT+2) the speech by the Fed representative Raphael Bostic is scheduled.
Support and resistance
On the H4 chart, the instrument corrected to the bottom line of Bollinger Bands. The nearest significant support level is 0.7058. The indicator is reversing downwards, and the price range is widening, indicating the continuation of the downtrend. MACD histogram is in the negative zone keeping the sale signal.
Resistance levels: 0.7100, 0.7130, 0.7152, 0.7189, 0.7218, 0.7258, 0.7299.
Support levels: 0.7058, 0.7033, 0.7021, 0.7005.
Trading tips
Short positions could be opened below 0.7050 with targets at 0.7015, 0.7000 and stop loss at 0.7065.
Long positions may be opened above 0.7075 with target at 0.7130 and stop loss at 0.7045.
Implementation time: 1-2 days.
Scenario
Timeframe Intraday
Recommendation SELL STOP
Entry Point 0.7045
Take Profit 0.7015, 0.7000
Stop Loss 0.7065
Key Levels 0.7005, 0.7021, 0.7033, 0.7058, 0.7100, 0.7130, 0.7152, 0.7189, 0.7218, 0.7258, 0.7299
Alternative scenario
Recommendation BUY STOP
Entry Point 0.7080
Take Profit 0.7130
Stop Loss 0.7045
Key Levels 0.7005, 0.7021, 0.7033, 0.7058, 0.7100, 0.7130, 0.7152, 0.7189, 0.7218, 0.7258, 0.7299