AUD/USD: impulse is silent, a prolonged downward correction is expected

Current trend

The Australian currency against the US dollar tends to rise against the backdrop of a depreciation of the latter. During the last three trading weeks of the current year, the pair overcame more than 300 points and broke through a number of key resistance marks.

The US currency is under pressure amid comments by the representatives of the US Fed about the prospective course of monetary policy, which calls into question the further increase in rates at the beginning of the coming year. Technically, the pair broke the downtrend and shifted to an intense upward trend.

Both today and at the beginning of the year 2018, we are unlikely to see high volatility due to the lack of important key releases.

Support and resistance

Now the pair is growing on two factors: a sharp decline in the US dollar and an increase in commodity prices The Australian currency is known to be refered to raw materials, and therefore is significantly prone to commodity prices, and in particular gold. Now the metal “shot up” — and behind him the NZD, too. But do not put excessive hopes: The RBA noted in the protocol that further growth of the national currency could slow inflation. In this regard, we should expect the upward momentum to remain at the level of 0.7860, followed by the formation of a deep correction.

Technically, at almost all timeframes, the indicators show a growth signal, but on D1 chart one can see that the pair has almost reached the upper boundary of the Ichimoku indicator cloud, which means that this level will be the strongest resistance.

Support levels: 0.7770, 0.7735, 0.7700, 0.7650, 0.7575, 0.7530, 0.7455.

Resistance levels: 0.7820, 0.7835, 0.7860, 0.7900, 0.7915.

Trading tips

The delayed short positions may be opened from the levels of 0.7835, 0.7860, counting on the long downward correction with the target at 0.7650 and the stop-loss at 0.7890.

Australian vs US Dollar

Buy Sell Spread
0.78112 0.78085 27

Scenario

Timeframe Weekly
Recommendations SELL LIMIT
Entry Point 0.7835, 0.7860
Take Profit 0.7650
Stop Loss 0.7890
Support levels 0.7455, 0.7530, 0.7575, 0.7650, 0.7700, 0.7770, 0.7820, 0.7835, 0.7860, 0.7900, 0.7915

AUD/USD: impulse is silent, a prolonged downward correction is expected

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Comments

comments