AUD/USD: technical analysis

AUD/USD, H4

On the 4-hour chart, the pair is trading in the lower Bollinger band. The price remains below its moving averages that start turning down. The RSI has formed a Bullish divergence with the price. The Composite is showing similar dynamics.

AUD/USD, D1

On the daily chart, the pair is trading in the lower Bollinger band. The price remains below its moving averages that are directed down. The RSI is testing from above its longer MA. The Composite is about to test its strong support.

Key levels

Support levels: 0.6740 (local lows), 0.6685 (August lows), 0.6460 (January 2009 lows).

Resistance levels: 0.6820 (August highs), 0.6860 (local highs), 0.6980 (local highs).

Trading tips

There is a chance of an upward correction.

Long positions can be opened from the level of 0.6860 with the target at 0.6980 and stop-loss at 0.6820. Validity – 3-5 days.

Short positions can be opened from the level of 0.6685 with the target at 0.6460 and stop-loss at 0.6740. Validity – 3-5 days.

Scenario

  • Timeframe

    Weekly

  • Recommendation

    BUY STOP

  • Entry Point

    0.6860

  • Take Profit

    0.6980

  • Stop Loss

    0.6820

  • Key Levels

    0.6460, 0.6685, 0.6740, 0.6820, 0.6860, 0.6980

Alternative scenario

  • Timeframe

    Weekly

  • Recommendation

    SELL STOP

  • Entry Point

    0.6685

  • Take Profit

    0.6460

  • Stop Loss

    0.6740

  • Key Levels

    0.6460, 0.6685, 0.6740, 0.6820, 0.6860, 0.6980