Current trend
Having reached a local maximum at the end of January, the pair switched to a decline and is currently trading below the psychological level of 0.8000. On the last trading day of the previous week AUD/USD lost more than 100 points due to the publication of positive labor market statistics in the US. The share of labor as well as the unemployment rate remained unchanged, while the average hourly wage rose by 0.4%, which is better than the forecast by 0.3%. In addition, NFPR in January increased by 200K with a forecast of growth of 180K. At the same time, additional pressure on the instrument was formed as a result of mass profit-taking by market participants who showed reasonable caution before publishing US labor market statistics.
Now the instrument is in the correction phase, before the announcement of the RBA’s decision on the interest rate. The Australian regulator is not interested in strengthening the AUD and it is very likely that the pair will continue to fall to the levels of 0.7855, 0.7820 in the next two days.
Support and resistance
On the 4-hour chart Bollinger bands are directed downward; the price range has expanded, which indicates a further fall.
The MACD histogram reached a minimum value in the negative zone, holding a strong sell signal.
Stochastic Oscillator leaves the oversold area, forming a strong buy signal.
Support levels: 0.7731, 0.7769, 0.7820, 0.7856, 0.7903.
Resistance levels: 0.7966, 0.8015, 0.8075, 0.8124.
Trading tips
Short positions should be opened below the level of 0.7900 with targets of 0.7820, 0.7800 and stop loss at 0.7945. Term of realization: 2 days.
Long positions can be placed above the level 0.8020 with targets of 0.8085, 0.8125 and stop loss at 0.7975. Term of realization: 2-3 days.
Australian vs US Dollar
Buy Sell Spread
0.79481 0.79456 25
Scenario
Timeframe Day's Range
Recommendations SELL STOP
Entry Point 0.7890
Take Profit 0.7820, 0.7800
Stop Loss 0.7945
Support levels 0.7731, 0.7769, 0.7820, 0.7856, 0.7903, 0.7966, 0.8015, 0.8075, 0.8124
Alternative scenario
Recommendations BUY STOP
Entry Point 0.8030
Take Profit 0.8085, 0.8125
Stop Loss 0.7975
Support levels 0.7731, 0.7769, 0.7820, 0.7856, 0.7903, 0.7966, 0.8015, 0.8075, 0.8124
Having reached a local maximum at the end of January, the pair switched to a decline and is currently trading below the psychological level of 0.8000. On the last trading day of the previous week AUD/USD lost more than 100 points due to the publication of positive labor market statistics in the US. The share of labor as well as the unemployment rate remained unchanged, while the average hourly wage rose by 0.4%, which is better than the forecast by 0.3%. In addition, NFPR in January increased by 200K with a forecast of growth of 180K. At the same time, additional pressure on the instrument was formed as a result of mass profit-taking by market participants who showed reasonable caution before publishing US labor market statistics.
Now the instrument is in the correction phase, before the announcement of the RBA’s decision on the interest rate. The Australian regulator is not interested in strengthening the AUD and it is very likely that the pair will continue to fall to the levels of 0.7855, 0.7820 in the next two days.
Support and resistance
On the 4-hour chart Bollinger bands are directed downward; the price range has expanded, which indicates a further fall.
The MACD histogram reached a minimum value in the negative zone, holding a strong sell signal.
Stochastic Oscillator leaves the oversold area, forming a strong buy signal.
Support levels: 0.7731, 0.7769, 0.7820, 0.7856, 0.7903.
Resistance levels: 0.7966, 0.8015, 0.8075, 0.8124.
Trading tips
Short positions should be opened below the level of 0.7900 with targets of 0.7820, 0.7800 and stop loss at 0.7945. Term of realization: 2 days.
Long positions can be placed above the level 0.8020 with targets of 0.8085, 0.8125 and stop loss at 0.7975. Term of realization: 2-3 days.
Australian vs US Dollar
Buy Sell Spread
0.79481 0.79456 25
Scenario
Timeframe Day's Range
Recommendations SELL STOP
Entry Point 0.7890
Take Profit 0.7820, 0.7800
Stop Loss 0.7945
Support levels 0.7731, 0.7769, 0.7820, 0.7856, 0.7903, 0.7966, 0.8015, 0.8075, 0.8124
Alternative scenario
Recommendations BUY STOP
Entry Point 0.8030
Take Profit 0.8085, 0.8125
Stop Loss 0.7975
Support levels 0.7731, 0.7769, 0.7820, 0.7856, 0.7903, 0.7966, 0.8015, 0.8075, 0.8124