AUD/USD: THE QUOTES ARE MOVING AWAY FROM THE RESISTANCE LINE OF THE EXPANDING FORMATION PATTERN
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 0.6650 |
| Take Profit | 0.6580 |
| Stop Loss | 0.6700 |
| Key Levels | 0.6580, 0.6650, 0.6680, 0.6760 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 0.6680 |
| Take Profit | 0.6760 |
| Stop Loss | 0.6640 |
| Key Levels | 0.6580, 0.6650, 0.6680, 0.6760 |
Current trend
Amid the growth of the American dollar, the AUD/USD pair is correcting downwards, trading at 0.6664.
The Australian currency is falling the publication of data from the labor market last week. The unemployment rate, taking into account seasonal fluctuations, increased from 4.0% to 4.1% and without them remained at 4.0%. The share of the economically active population increased from 66.8% to 66.9% and consolidated at 66.8%, respectively. Full-time employment fell by 43.3K to 9.944M, while part-time employment fell by 6.8K to 4.461M. Thus, the sector remains in a negative trend, preventing Reserve Bank of Australia (RBA) officials from taking action. Investors do not expect a rate cut soon, which puts pressure on the Australian dollar.
The US currency is growing, trading at 104.00 in USDX. Yesterday evening, the current US President, Joe Biden, officially refused to participate in the presidential election, justifying this decision by the interests of the Democratic Party and naming Vice President Kamala Harris as his successor. Against this statement, the likelihood of victory for Republican candidate Donald Trump increases. With them, expectations of changes in the national economy, which the politician previously stated, support the dollar.
Support and resistance
On the daily chart, the trading instrument is correcting, retreating from the resistance line of the Expanding formation pattern with dynamic boundaries of 0.6800–0.6300.
Technical indicators are slowing down the buy signal: fast EMA on the Alligator indicator are approaching the signal line, narrowing the range of fluctuations, and the AO histogram is decreasing in the buy zone.
Resistance levels: 0.6680, 0.6760.
Support levels: 0.6650, 0.6580.
Trading tips
Short positions may be opened after the price declines and consolidates below 0.6650, with the target at 0.6580. Stop loss — 0.6700. Implementation period: 7 days or more.
Long positions may be opened after the price grows and consolidates above 0.6680, with the target at 0.6760. Stop loss – 0.6640.
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