AUD/USD: the instrument shows ambiguous dynamics 02 March 2021, 10:27

AUD/USD: the instrument shows ambiguous dynamics

02 March 2021, 10:27

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	0.7785
Take Profit	0.7867, 0.7900
Stop Loss	0.7725
Key Levels	0.7641, 0.7675, 0.7700, 0.7725, 0.7780, 0.7804, 0.7840, 0.7867

Alternative scenario
Recommendation	SELL STOP
Entry Point	0.7720
Take Profit	0.7641, 0.7600
Stop Loss	0.7780
Key Levels	0.7641, 0.7675, 0.7700, 0.7725, 0.7780, 0.7804, 0.7840, 0.7867

Current trend

Today during the Asian session, the AUD/USD pair is showing ambiguous dynamics, consolidating after yesterday's correction attempt.

Investors are focused on the decision of the Reserve Bank of Australia on the interest rate, as well as the following comments. As expected, the regulator did not change the parameters of monetary policy and kept the rate at 0.1%. At the same time, it became known that last week, the bank temporarily doubled its purchases of long-term bonds to keep the profitability, which has recently had significantly corrected, at the target levels.

The accompanying statement noted that the RBA was still striving for the 3-year target for the yield of the securities, taking all necessary measures to stabilize this value. The rate will remain minimal until the target inflation rate of 2–3% is reached. This is not expected to happen until 2024.

Support and resistance

On the daily chart, Bollinger Bands reverse into a horizontal plane. The price range remains virtually unchanged but is wide enough for the current level of market activity. MACD falls, maintaining a strong sell signal (the histogram is below the signal line). Stochastic falls but is near the zero line, which indicates that AUD may become oversold in the ultra-short term.

Development of a full-fledged upward corrective trend is possible in the short and/or super short term.

Resistance levels: 0.7780, 0.7804, 0.7840, 0.7867.

Support levels: 0.7725, 0.7700, 0.7675, 0.7641.

Trading tips

Long positions may be opened after the breakout of 0.7780 with the targets at 0.7867–0.7900. Stop loss is 0.7725. Implementation period: 2–3 days.

Short positions may be opened after the breakdown of 0.7725 with the targets at 0.7641–0.7600. Stop loss is 0.7780.