Published On: Thu, Apr 27th, 2017

AUD/USD: consolidation in the downward trend


Current trend

The AUD is lowering against the USD and crossed a range of key support levels at 0.7150, 0.7475, so the trend is downwards. In April the pair is trading within the wide downward channel. It rapidly grew due to the USD positive data and reversed downwards due to the rapid fall of the demand on the AUD. This week the pair is lowering due to the negative fundamental Australian background and the lowering of the investors’ interest in the AUD. Yesterday the key visitor sector data and the consumer price index didn’t meet the expectations and stayed in the red zone, so the pair continued to lower. Today and on Friday the USA publications such as Durable Goods Orders and the first quarter US Economy growth rate are worth traders’ attention.

Support and resistance

In the short term the lowering of the pair to the level of 0.7400, 0.7370 is expected, after which the pair will consolidate and be trading in the current downward channel. The possibility of long upward corrections, which follows the pair in the period of the low liquidity and weakness of the USD, is worth traders’ attention. The technical indicators changed their positions and confirm the downward forecast, MACD reflects the growth of the short positions volumes, and the lower Bollinger Band (0.7200) borders the target level in the middle term period.

Support levels: 0.7400, 0.7370, 0.7300, 0.7240, 0.7200, 0.7160, 0.7130, 0.7000.

Resistance levels: 0.7475, 0.7510, 0.7555, 0.7610, 0.7680, 0.7750, 0.7810.

Trading scenario

Increase the volume of short positions at the current level and open pending short positions from the levels of 0.7475, 0.7510 with the target at 0.7400, 0.7200, stop loss is at 0.7570.

Forex Analysis

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