Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

AUD/USD: Continues Decline Towards Support Levels 0.7085 And 0.7025

Published 02/06/2019, 06:44 AM
Updated 07/09/2023, 06:31 AM

The Australian dollar rose on Tuesday after the RBA meeting, because Low gave optimistic forecasts for GDP growth and inflation. However, on Wednesday, the reverse trend of the Australian dollar is observed, which is falling, and the pair AUD/USD is trading at the beginning of the European session, near the 0.7135 mark, 100 points below the opening price of the trading day.

On Friday, the RBA is expected to publish lower forecasts of GDP growth. Philip Lowe said Wednesday that “China’s GDP growth slowdown is the most serious threat to the Australian economy. World events are the main source of risk for the Australian economy”, adding that “the economic situation in Australia may be worse than is commonly believed”. Recently, data has been coming in from Australia indicating a sharp deterioration in business conditions, a fall in housing prices, a reduction in the number of constructions permits and employment announcements.

On Wednesday, AUD/USD broke through important short-term support levels of 0.7210 (EMA200 on the 1-hour chart), 0.7172 (EMA200 on the 4-hour chart, EMA50 on the daily chart) and continues to decline towards support levels of 0.7085, 0.7025.

On Friday (00:30 GMT), the RBA will comment on the prospects for its monetary policy. There will also be given forecasts regarding the further growth of the Australian economy, labor market, inflation. If forecasts turn out to be negative, then the Australian dollar and AUD/USD will continue to decline.

Long-term reduction targets are at support levels of 0.6910 (lows of September 2015), 0.6830 (lows of 2016). Negative dynamics prevail; below the resistance level 0.7172 short positions are preferable.

Support Levels: 0.7100, 0.7085, 0.7025
Resistance Levels: 0.7172, 0.7210, 0.7245, 0.7295, 0.7385, 0.7460

Trading recommendations
Sell in the market. Stop Loss 0.7190. Take-Profit 0.7100, 0.7085, 0.7025, 0.6910, 0.6830
Buy Stop 0.7215. Stop Loss 0.7160. Take-Profit 0.7245, 0.7295, 0.7385, 0.7460

AUD/USD, Daily

AUD/USD, 4 Hour

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.