AUD/USD: Australian dollar is going down
06 February 2019, 08:26
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY |
| Entry Point | 0.7145 |
| Take Profit | 0.7200, 0.7234 |
| Stop Loss | 0.7115, 0.7100 |
| Key Levels | 0.7000, 0.7027, 0.7075, 0.7115, 0.7165, 0.7200, 0.7234, 0.7263 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 0.7110 |
| Take Profit | 0.7027, 0.7000 |
| Stop Loss | 0.7165 |
| Key Levels | 0.7000, 0.7027, 0.7075, 0.7115, 0.7165, 0.7200, 0.7234, 0.7263 |
Current trend
AUD showed ambiguous dynamics against USD on Tuesday.
December data on retail sales in Australia were poor. On a monthly basis, the indicator decreased by 0.4%, while in quarterly terms it slowed down from 0.2% to 0.1%. However, the RBA comments added substantial support for AUD. At the regular meeting, the regulator left the rate unchanged at 1.50%. Bank officials point out that low interest rates continue to support the economy and contribute to the achievement of target inflation levels. However, risks in the economy have increased due to global trade tensions. The RBA also lowered the forecast for economic growth this year to 3.0%.
Today, the instrument demonstrates a steady decline, which was the result of two speeches at once — by US President Donald Trump and by the head of the RBA, Philip Lowe.
Support and resistance
In the D1 chart, Bollinger Bands are reversing horizontally. The price range is trying to consolidate, reflecting the ambiguous nature of trading in the short and middle term. MACD is going down preserving a sell signal (located below the signal line). Stochastic keeps a steady downward direction, but is rapidly approaching its lows, which indicates the growing risks associated with the oversold AUD.
Existing short positions should be kept in the short term until the situation clears up.
Resistance levels: 0.7165, 0.7200, 0.7234, 0.7263.
Support levels: 0.7115, 0.7075, 0.7027, 0.7000.
Trading tips
To open long positions, one can rely on the rebound from the support level of 0.7115 with the subsequent breakout of 0.7130 or 0.7140. Take profit — 0.7200 or 0.7234. Stop loss — 0.7115 or 0.7100.
A breakdown of 0.7115 may be a signal to further sales with target at 0.7027 or 0.7000. Stop loss — 0.7165.
Implementation time: 2-3 days.
AUD showed ambiguous dynamics against USD on Tuesday.
December data on retail sales in Australia were poor. On a monthly basis, the indicator decreased by 0.4%, while in quarterly terms it slowed down from 0.2% to 0.1%. However, the RBA comments added substantial support for AUD. At the regular meeting, the regulator left the rate unchanged at 1.50%. Bank officials point out that low interest rates continue to support the economy and contribute to the achievement of target inflation levels. However, risks in the economy have increased due to global trade tensions. The RBA also lowered the forecast for economic growth this year to 3.0%.
Today, the instrument demonstrates a steady decline, which was the result of two speeches at once — by US President Donald Trump and by the head of the RBA, Philip Lowe.
Support and resistance
In the D1 chart, Bollinger Bands are reversing horizontally. The price range is trying to consolidate, reflecting the ambiguous nature of trading in the short and middle term. MACD is going down preserving a sell signal (located below the signal line). Stochastic keeps a steady downward direction, but is rapidly approaching its lows, which indicates the growing risks associated with the oversold AUD.
Existing short positions should be kept in the short term until the situation clears up.
Resistance levels: 0.7165, 0.7200, 0.7234, 0.7263.
Support levels: 0.7115, 0.7075, 0.7027, 0.7000.
Trading tips
To open long positions, one can rely on the rebound from the support level of 0.7115 with the subsequent breakout of 0.7130 or 0.7140. Take profit — 0.7200 or 0.7234. Stop loss — 0.7115 or 0.7100.
A breakdown of 0.7115 may be a signal to further sales with target at 0.7027 or 0.7000. Stop loss — 0.7165.
Implementation time: 2-3 days.
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