Today I would like to consider the technical picture of another interesting currency pair, aud / usd, which has recently shown very good movements.
Weekly After the fall of 0.8123-0.7500, the Australian dollar began to be corrected and for the fourth week in a row shows growth against its namesake from the United States. However, the final impact on the results of the current week will have data on the US labor market, which will be published today at 16:30 (Moscow time). At the time of writing, the pair is trading above the level of 23.6 fibo from the long-term downtrend 1.1078-0.6825. Also, the Aussie is trading above 50% Fibo from the recent fall of 0.8123-0.7500. I believe that the passage of both designated Fibo levels and anchoring above them will confirm the seriousness of the ascending plans. I would like to draw attention to the strong technical level of 0.7833, it was from here in April 2016 the pair fell to 0.7143 and for a long time was trading below 0.7833. Interestingly, the first attempt to return above this mark (July-September 2017) was unsuccessful. Now, apparently, the bulls are again trying to go through 0.7833 and gain a foothold above this mark. If the players have enough gunpowder in the flasks, and they continue to move the quotes up, the immediate targets for aud / usd will be 0.7895, 0.7950, 0.8000 and 0.8040. In the alternative scenario and the return of the pair below 0.7800, we can expect a decline to 0.7750, 0.7700 and below, towards the price zone 0.7680-0.7650.
Daily On this timeframe it is worth noting one characteristic moment for aud / usd sentiment. After the formation of the candle for January 3, which may well be considered a reversal bearish model, the market already the next day made it clear in which direction he intends to move on. Yesterday’s fairly complete bullish candle indicates a desire to move northward. In addition, the pair emerged upward from the cloud of the Ichimoku indicator, over which three consecutive daily candles were closed. Attempts to bears to reverse the situation and return the price to the cloud while remain unsuccessful. Tonight, data on the Australian trade balance was published, which turned out to be worse than expected and led to a decrease in aud / usd. At the moment, this movement can be perceived as a rollback to the level of 0.7833 that has passed upward, with a subsequent reversal to the resumption of the upward dynamics. At the same time, it is impossible to exclude one more rollback to the broken upper border of the Ishimoku cloud, which passes at 0.7816. To summarize and mark the trading ideas for aud / usd, then it is likely that the Australian currency will continue to strengthen, which means that it is worth looking for points for buying the pair. In my opinion, the closest option for opening long positions will be a decline in the area of 0.7830-0.7800. A little lower, you can try to buy a pair with a short-term decline in the price zone 0.7790-0.7780. There are no good signals for sales so far, but if a reversal bearish candle appears at Weekly at the weekly trading, you can try to sell aud / usd with a stop loss for the previous high and with small targets at 0.7815, 0.7795, 0.7785 and 0.7755 . As with many other major currency pairs, for aud / usd today’s reports on the US labor market will be very important for determining further price dynamics. At the moment, much points to continued growth.
Review prepared by Fort Financial Services analytical department. Follow our publications!