AUD/USD

AUD/USD: the instrument is trading in both directions

Current trend, AUD showed ambiguous dynamics against USD on Tuesday. In the afternoon, the instrument traded with a raise, but then it lost its advantage quickly, ending the day with almost no result.

In the absence of significant economic releases, AUD is traded under the influence of US and European news. The threat of failure of the Brexit agreement in the British Parliament strengthens AUD against European competitors. At the same time, the potential escalation of the US-Chinese trade war, which President Trump described the day before, could leave AUD under long-term pressure.

Today, the instrument also is trading with a raise. Rather weak data on the dynamics of Construction Work Done in Australia were ignored by the market. In Q3 2018, the indicator fell by 2.8% QoQ after rising by 1.8% in the previous period. Analysts had expected growth rate at 0.9% QoQ.

Support and resistance

Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is slightly narrowed from above, being spacious enough for the current activity level in the market. MACD is going down keeping a moderate sell signal (located below the signal line). Stochastic is trying to reverse upwards near the "20" level, which can be called a formal margin of the instrument being oversold.

Formation of full-fledged trading signals for the corrective growth of AUD should be taken into account.

Resistance levels: 0.7257, 0.7276, 0.7301, 0.7336.

Support levels: 0.7200, 0.7180, 0.7150, 0.7130.

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Trading tips

To open long positions, one can rely on the breakout of 0.7257. Take profit — 0.7320 or 0.7336. Stop loss — 0.7225.

The return of "bearish" trend with the breakdown of 0.7200 may become a signal for further sales with the target at 0.7150 or 0.7130. Stop loss — 0.7230.

Implementation period: 2-3 days.

 

Scenario

Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.7260
Take Profit 0.7320, 0.7336
Stop Loss 0.7225
Key Levels 0.7130, 0.7150, 0.7180, 0.7200, 0.7257, 0.7276, 0.7301, 0.7336

 

Alternative scenario

 

Recommendation SELL STOP
Entry Point 0.7195
Take Profit 0.7150, 0.7130
Stop Loss 0.7230
Key Levels 0.7130, 0.7150, 0.7180, 0.7200, 0.7257, 0.7276, 0.7301, 0.7336

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