AUD/USD: interest rate is likely to fall on 06.07.2015

6 July, 2015

Current trend

Australian dollar in the AUD/USD pair opened Monday with a gap down of almost 40 points in return for the events in Greece. Besides the European factor and the U.S. dollar strengthening, the Australian currency is pressurized by decrease in prices for liquefied natural gas, iron ore, decrease in Japanese demand as well as decline in Chinese stock market, and Australian Retail Sales statistics for May (+0.3% vs. 0.5% forecast).

The RBA decision on the discount rate is announced on Tuesday at 07:30 a.m. (GMT +3). The interest rate is expected to remain at 2%. Previous reduction of interest rates in Australia and RBA intention to ease the monetary policy had no tangible effect on decline in the Australian dollar. Therefore, it is hard to predict the market reaction this time. However, the volatility in pairs with the Australian dollar and in the pair AUD/USD is expected to be high.

ISM Non-Manufacturing and Labor Market Conditions Indexes are released today at 4:45 and 5:00 p.m. (GMT +3) respectively. Positive statistics strengthens the U.S. dollar in the AUD/USD pair.

Support and resistance

The pair broke through 0% Fibonacci (0.7590) correction to the decrease since July 2014.

OsMA and Stochastic lines on the timeframes, from the 4-hour to the month, indicate the further decrease.

The pair hit the last lows in 2008, at the level of 0.6000. Though this price is still 1500 points to go, given the fundamental factors, the movement in this direction in the medium term is likely to continue.

Nearest targets are 0.7450-0.7300.

Support levels: 0.7450, 0.7400.

Resistance levels: 0.7530, 0.7590, 0.7635.

Trading tips

Open short positions from the current price and from the levels 0.7530, 0.7590 with targets at 0.7480, 0.7450 and stop loss at 0.7620.

The breakout of 0.7635, supported by the indicators, should open long positions and the way first to 0.7700, 0.7720 and then to 0.7850, 0.8025.

Source link  
S&P500: will the correction continue?

Since December 2015 the index S&P500 has been in the downtrend. In February, the index fell to the level of 2108.0, which is almost 15%. In the past 4 sessions the index had adjusted, approaching the level of 1935.0...

XAU/USD: A decline is likely to continue

On the 4-hour chart, the price is testing the level of 1210.80 (23.6% correction); the ascending 38.2% fan line is an additional resistance for the price. If this resistance area is overcome, a growth would continue to 1224.90 and 1249.25...

XAG/USD: pair is falling on February 16, 2016

Yesterday, the price of silver fell to last Thursday’s opening levels, when a new local low since the end of October 2015 was reached. Prices of commodity assets are falling as risk appetite is gradually returning to the market...

XAG/USD: silver slowed growth on February 11, 2016

Yesterday the pair showed choppy trade and closed at its opening level. The price was pressured by growth in the European stock markets and Fed Chair Janet Yellen testimony before the US Congress...

Analytical review of American Express Company

The Company ranks 23th on capitalization in the finance sector among the Issuers, trading in the American stock market. On 22 January the company reported for Q4 of the fiscal year of 2015. The company has been demonstrating negative dynamics for the last few quarters...

Brent: decline has resumed on February 05, 2016

Since the opening of the trading day the price of crude oil Brent is declining. On the hourly chart the price has broken down the first support level of 34.35 (ÅÌÀ50), which is ÅÌÀ200 on the four-hour chart...

XAU/USD: Gold is overbought on February 04, 2016

The price of gold has returned to the level of 1190.00 USD per troy ounce, (which is had at the beginning of November), regaining half of the losses since mid-October 2015. On the daily chart the price has broken down strong resistance levels 1129.00 (ÅÌÀ200)...

EUROSTOXX50 : Volatility in the financial markets continues

Amid sharp decline in the global stock indices since the beginning of the year European index EUROSTOXX50 has lost about 14%. During the final surge of decline from 3515.0 to 2840.0 last December, the price has managed to go above the level of 23.6% Fibonacci...

Brent: Oil prices can renew the plunge

On the daily chart the price has broken down the upper line of the downward channel at the level of 35.50. Although, on the daily chart the indicators OsMA and Stochastic recommend long positions; on the four-hour chart the indicators give signals in favor of the sell positions...