AUD/USD: the instrument resumes growth 11 February 2021, 09:10

AUD/USD: the instrument resumes growth

11 February 2021, 09:10

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	0.7760
Take Profit	0.7818
Stop Loss	0.7725
Key Levels	0.7641, 0.7675, 0.7700, 0.7725, 0.7757, 0.7780, 0.7818

Alternative scenario
Recommendation	SELL STOP
Entry Point	0.7695
Take Profit	0.7641
Stop Loss	0.7725
Key Levels	0.7641, 0.7675, 0.7700, 0.7725, 0.7757, 0.7780, 0.7818

Current trend

AUD is showing moderate gains against USD in today's Asian session, recovering from the previous decline that prevented the instrument from consolidating at new local highs since January 27. The weakening of AUD on Wednesday was facilitated by the uncertain macroeconomic statistics from China, as well as a correctional growth attempt of USD. The Consumer Price Index in China fell 0.3% YoY in January after rising 0.2% YoY in the previous month. Analysts had expected zero dynamics of the indicator.

US inflation data also were worse than expected. The Consumer Price Index excluding Food and Energy slowed down in January from +1.6% YoY to +1.4% YoY against the forecast of +1.5% YoY. On a monthly basis, the indicator dropped to zero, while analysts had expected growth by 0.2% MoM.

Support and resistance

Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is almost unchanged, but it remains rather spacious for the current level of activity in the market. MACD indicator is growing preserving a buy signal (located above the signal line). Stochastic, having reached its highs, reversed into the horizontal plane, indicating overbought AUD in the ultra-short term.

Current showings of the indicators do not contradict the further development of the moderate uptrend in the short term.

Resistance levels: 0.7757, 0.7780, 0.7818.

Support levels: 0.7725, 0.7700, 0.7675, 0.7641.

Trading tips

To open long positions, one can rely on the breakout of 0.7757. Take-profit – 0.7818. Stop-loss – 0.7725. Implementation time: 1-2 days.

The development of correctional trend with the breakdown of 0.7700 may become a signal for new sales with target at 0.7641. Stop-loss – 0.7725.