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In response to the publication last Friday and today of a fresh portion of positive macro statistics from Australia and against the background of the weakening of the US dollar, the AUD/USD pair has been growing since the beginning of today's trading day.
At the time of publication of this article, AUD/USD is traded above the resistance level 0.7037 (Fibonacci 38.2% retracement to the pair's decline from 0.9500 in July 2014 to 2020 lows near 0.5510), near 0.7050.
However, despite the current upward correction, the pair is in a steady downtrend, below the key resistance level 0.7320 (EMA200 on the daily and weekly charts).
Breakdown of the support level 0.7037 and the short-term support level 0.7032 (ЕМА200 on the 15-minute chart) will be a signal for the resumption of sales, and the breakdown of the local support level 0.7000 will be a confirmation. Downside targets are local support at 0.6970 (18-month lows and January lows), 0.6800, 0.6455 (Fibonacci 23.6%). The further downside target is at the multi-year lows near 0.5500, reached in March 2020 at the start of the coronavirus pandemic.
In the alternative scenario, the upward correction will continue with targets at the resistance levels 0.7112 (EMA200 on the 1-hour chart), 0.7170, 0.7190 (EMA50 on the daily chart), 0.7290 (EMA144 on the daily chart), 0.7320.
A breakdown of the resistance level 0.7320 can turn the tide and bring AUD/USD into the bull market zone.
In the meantime, AUD/USD remains in the zone of the global bearish trend. Therefore, you should give preference to short positions, finding suitable entry points into the market.
Support levels: 0.7037, 0.7032, 0.7000, 0.6970, 0.6900, 0.6800, 0.6455
Resistance levels: 0.7085, 0.7112, 0.7170, 0.7190, 0.7290, 0.7320
Trading Recommendations
Sell Stop 0.7020. Stop Loss 0.7065. Take-Profit 0.7000, 0.6970, 0.6900, 0.6800, 0.6455
Buy Stop 0.7065. Stop Loss 0.7020. Take-Profit 0.7085, 0.7112, 0.7170, 0.7190, 0.7290, 0.7320
