Current trend
Following the speech of the head of the RBA, Mr. Glenn Steven on Wednesday, the pair AUD/USD fell by 50 points. Steven said that the Bank of Australia is prepared to the lowering of the interest rate and weakening in the AUD. Later, by the end of the Asian session and opening of European session the USD started to decline rapidly in the market and in the pair AUD/USD. After the statement by US President Barack Obama at the Summit G7 that strong USD is not favourable for the American economy the USD has been declining in the market for the third consecutive day.
Support and resistance
The pair is traded in the range of 0.7590 – 0.8110. On the daily and four-hour charts the indicators OsMA and Stochastic give buy signals; however the rise can be considered as the correction in the overall downtrend of this week. This is also supported by the fundamental facts, such as the intention of the US fed to raise interest rate and repeatedly expressed opinion by the representatives of RBA about weakening in the Australian dollar.
Support levels: 0.7700, 0.7675, 0.7635 and 0.7590.
Resistance levels: 0.7785, 0.7820, 0.7915, 0.8025, 0.8110, 0.8125.
Trading tips
It is recommended to open short positions at the current price and from the levels of 0.7785, 0.7800 and 0.7820 with the targets of 0.7710, 07675 and 0.7635, if the indicators OsMA and Stochastic give sell signals on the four-hour chart (OsMA histogram shall go down and cross the zero line; fast line of Stochastic shall cross the slow line from top to bottom and preferable leave overbought zone. Long positions are possible after breakdown of the level of 0.7915 with the targets of 0.8025 and 0.8110.