Sep 14, 2020, 9:55:27 AM
AUD/USD: insignificant strengthening
Current trend
AUD is trading near zero against USD during today's Asian session, developing mostly flat dynamics at the end of the last trading week. Last Friday's macroeconomic statistics from the US was again ambiguous. In August, the Consumer Price Index in the USA slowed down from +0.6% MoM to +0.4% MoM, which was slightly better than market expectations at +0.3% MoM. In annual terms, inflation accelerated from +1% YoY to +1.3% YoY with the forecast of growth by 1.2% YoY. Excluding food and energy, prices increased by 0.4% MoM and 1.7% YoY, which was also slightly better than the forecasts of +0.2% MoM and +1.6% YoY.
Interesting statistics from the US and Australia are not expected today, but on Tuesday Australia will publish the minutes of the last RBA meeting and a quarterly survey of consumer sentiment from Westpac will be released.
Support and resistance
Bollinger Bands in D1 chart show unsteady growth. The price range is narrowing, reflecting the multidirectional dynamics appearance in the short term. MACD is declining keeping a weak sell signal (located below the signal line). Stochastic maintains an uptrend, indicating corrective growth in the short/ultra-short term.
It is necessary to wait for more certain trade signals from the indicators to form new positions.
Resistance levels: 0.7274, 0.7300, 0.7323, 0.7360.
Support levels: 0.7247, 0.7200, 0.7150, 0.7130.
Trading tips
To open long positions, one can rely on the breakout of 0.7300. Take-profit – 0.7360. Stop-loss – 0.7270. Implementation time: 2-3 days.
The breakdown of 0.7247 may serve as a signal to new sales with the target at 0.7200. Stop-loss – 0.7274. Implementation time: 1-2 days.
Scenario
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Timeframe
Intraday
-
Recommendation
BUY STOP
-
Entry Point
0.7305
-
Take Profit
0.7360
-
Stop Loss
0.7270
-
Key Levels
0.7130, 0.7150, 0.7200, 0.7247, 0.7274, 0.7300, 0.7323, 0.7360
Alternative scenario
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Timeframe
Intraday
-
Recommendation
SELL STOP
-
Entry Point
0.7240
-
Take Profit
0.7200
-
Stop Loss
0.7274
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Key Levels
0.7130, 0.7150, 0.7200, 0.7247, 0.7274, 0.7300, 0.7323, 0.7360
