AUD / USD: push stops, prolonged downward correction required December 07, 2018, 13:44

Scenario
Weekly period
Recommended SELL LIMIT
Entry point 0.7835, 0.7860
Take Profit 0.7650
Stop Loss 0.7890
Key rate 0.7455, 0.7530, 0.7575, 0.7650, 0.7700, 0.7770, 0.7820, 0.7835, 0.7860, 0.7900, 0.7915

Current trends

Australia's currency against the US dollar tends to rise against its latest depreciation background. During the last three trading weeks of the year, the pair managed to overcome more than 300 points and broke through a number of key resistance signs.

The US currency came under pressure amid comments by US Fed representatives on the possibility of monetary policy, which questioned an earlier rate hike early next year. Technically, the pair is breaking the downtrend and turning to an intense uptrend.

Both today and in early 2018, we are unlikely to see high volatility in the absence of important releases.

Support and resistance

Now the pair is growing on two factors: a sharp decline in US dollars and rising commodity prices The Australian currency is known to refer to raw materials, and is therefore extremely vulnerable to commodity prices, and especially gold. Now the metal "shot" - and behind it NZD too. But do not put too much hope: The RBA noted in the protocol that further growth of the national currency could slow down inflation. In this case, we should expect momentum upward to stay at the 0.7860 level, followed by a deep correction.

Technically, on almost any time frame, the indicator shows the growth signal, but on the D1 chart, one can see that the pair is almost reaching the upper limit of the Ichimoku indicator cloud, which means this level will be the strongest resistance.

Support level: 0.7770, 0.7735, 0.7700, 0.7650, 0.7575, 0.7530, 0.7455.

Resistance level: 0.7820, 0.7835, 0.7860, 0.7900, 0.7915.

Trade tips

The position of the pending sell can be opened from the 0.7835 level, 0.7860, calculating the downward correction targeting at 0.7650 and stop-loss at 0.7890.