AUD/USD: the instrument is trading in both directions

Current trend, AUD showed a moderate decline against USD on Thursday, returning to the "bearish" dynamics after a fairly active growth on Wednesday.

In the absence of significant releases, the movement of AUD was technical. However, it is worth noting the visit to Australia of the Indian President Ram Nath Kovind, who called on Australian businessmen to deal with his country more actively. During the visit, it was decided to sign a trade agreement in the next 12 months in order to increase mutual investments.

On Friday, traders will focus on the block of statistics on US business activity in November from Markit. At the moment, Markit Composite PMI is expected to grow from 54.9 to 56.0 points, which may contribute to the further growth of USD.

Support and resistance

In the D1 chart, Bollinger Bands are reversing horizontally. The price range is trying to consolidate, but remains rather spacious for the current level of activity in the market. MACD is declining keeping a weak sell signal (located below the signal line). After a protracted decline, Stochastic reversed upwards, reacting to the growth of the instrument on Wednesday. The indicator has not yet responded to the resumption of the "bearish" dynamics.

Existing short positions should be kept until the situation clears up.

Resistance levels: 0.7257, 0.7276, 0.7301, 0.7336.

Support levels: 0.7233, 0.7200, 0.7180, 0.7150.


Trading tips

To open long positions, one can rely on the breakout of 0.7276. Take profit — 0.7336. Stop loss — 0.7250 or 0.7240.

A breakdown of 0.7233 may be a signal to further sales with target at 0.7180 or 0.7150. Stop loss — 0.7260.

Implementation period: 2-3 days.



Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.7280
Take Profit 0.7336
Stop Loss 0.7250, 0.7240
Key Levels 0.7150, 0.7180, 0.7200, 0.7233, 0.7257, 0.7276, 0.7301, 0.7336


Alternative scenario


Recommendation SELL STOP
Entry Point 0.7230
Take Profit 0.7180, 0.7150
Stop Loss 0.7260
Key Levels 0.7150, 0.7180, 0.7200, 0.7233, 0.7257, 0.7276, 0.7301, 0.7336

Add comment

Security code

© 2014-2018, Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange, or any kind of trading you should carefully consider your investment objectives, level of experience, and risk appetite. No information or opinion contained on this site should be taken as a solicitation or offer to buy or sell any currency, equity or other financial instruments or services. Past performance is no indication or guarantee of future performance. is an affiliate partner with various brokers and may be compensated for referred Traders. All reviews remain unbiased and objective and immediate action will be taken against any broker which is found to be in breach of regulation. These partnerships have proven to be great aids in the furthering communication between brokers and our visitors. Only the NFA regulated brokers featured on this site are available to U.S. customers. Forex