AUD/USD: general review
17 July 2019, 12:14
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL |
| Entry Point | 0.7008 |
| Take Profit | 0.6940 |
| Stop Loss | 0.7038 |
| Key Levels | 0.6940, 0.6955, 0.6967, 0.6982, 0.6994, 0.7000, 0.7020, 0.7038, 0.7046, 0.7068, 0.7100 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 0.7050 |
| Take Profit | 0.7100 |
| Stop Loss | 0.7020 |
| Key Levels | 0.6940, 0.6955, 0.6967, 0.6982, 0.6994, 0.7000, 0.7020, 0.7038, 0.7046, 0.7068, 0.7100 |
Current trend
On Tuesday, the US dollar strengthened against the Australian one amid moderately optimistic macroeconomic statistics.
Retail sales in June unexpectedly rose by 0.7% after rising by 0.6% MoM and the forecast was 0.3% MoM. A confident sales growth helps to reduce concerns about the slowdown in the US economy and serves as another signal in favor of maintaining interest rates at the next Fed meeting on July 30-31. However, US data on the dynamics of industrial output for June showed zero dynamics, despite the expected growth of 0.2% MoM. The production capacity utilization rate in June fell from 78.1% to 77.9%, which also turned out to be worse than market expectations.
Today, the pair continues to decline in view of the Westpac leading indicators index decline by 0.08% in June. Also, data from the USA on changes in the dynamics of construction permits and the number of new houses construction projects (14:30 GMT+2) can affect the dynamics of the instrument; moderate volatility is expected in the market.
Support and resistance
On H4 chart the instrument was corrected to the midline of Bollinger Bands, the indicator's cloud is narrowing. MACD histogram is in the positive area keeping a signal for the opening of long positions.
Support levels: 0.7000, 0.6994, 0.6982, 0.6967, 0.6955, 0.6940.
Resistance levels: 0.7020, 0.7038, 0.7046, 0.7068, 0.7100.
Trading tips
Short positions may be opened from the current level with the target at 0.6940 and stop loss at 0.7038.
Long positions may be opened from 0.7050 with the target at 0.7100 and stop loss at 0.7020.
Implementation period: 1-3 days.
On Tuesday, the US dollar strengthened against the Australian one amid moderately optimistic macroeconomic statistics.
Retail sales in June unexpectedly rose by 0.7% after rising by 0.6% MoM and the forecast was 0.3% MoM. A confident sales growth helps to reduce concerns about the slowdown in the US economy and serves as another signal in favor of maintaining interest rates at the next Fed meeting on July 30-31. However, US data on the dynamics of industrial output for June showed zero dynamics, despite the expected growth of 0.2% MoM. The production capacity utilization rate in June fell from 78.1% to 77.9%, which also turned out to be worse than market expectations.
Today, the pair continues to decline in view of the Westpac leading indicators index decline by 0.08% in June. Also, data from the USA on changes in the dynamics of construction permits and the number of new houses construction projects (14:30 GMT+2) can affect the dynamics of the instrument; moderate volatility is expected in the market.
Support and resistance
On H4 chart the instrument was corrected to the midline of Bollinger Bands, the indicator's cloud is narrowing. MACD histogram is in the positive area keeping a signal for the opening of long positions.
Support levels: 0.7000, 0.6994, 0.6982, 0.6967, 0.6955, 0.6940.
Resistance levels: 0.7020, 0.7038, 0.7046, 0.7068, 0.7100.
Trading tips
Short positions may be opened from the current level with the target at 0.6940 and stop loss at 0.7038.
Long positions may be opened from 0.7050 with the target at 0.7100 and stop loss at 0.7020.
Implementation period: 1-3 days.
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