AUD/USD pair didn’t do anything during the session on Monday, due to Memorial Holiday in the US there was a very low liquidity. Besides the British were celebrating “Spring day off” and as a result the liquidity was at a low level for the most part of the day.
The area where the AUD/USD are trading right now is a significant support. In fact this area is a long-term support for this market, that is why at the moment it plays a significant role. We assume that one may observe formation of new intermediate tendency, up or down.
Traders should wait to see whether the price breaks this level to continue its lowering and we certainly will recommend open positions for sale. However, if the Australian can rehabilitate higher than the level of 0.99, the Australian dollar will continue its growth up to level of 1.06. In other words now is one of those moments that are defining the movement of the pair for upcoming weeks if not months.
Reserve bank of Australia assumed recently that maybe Australian dollar will be weak in the future and economic data support this assumption. Australian economy depends on the situation in China, and recent economic data of China demonstrated the slowdown. This may provoke fall of Australian dollar. If the AUD/USD pair falls lower than level of support 0.9650, we assume that this opens way for the level of 0.90 in the end. Retention of this position will allow Australian dollar to return to the level of 1.06, because the price has been going up to that level for the last several weeks. Sometimes the market pays us to wait and we think that this is one of those moments.
The signal for traders to sell will be the adjustment of AUD/USD on a daily graph lower than the level of 0.9650-00, stop-loss should be allocated at a level of 0.9800-50 in order to be on the safe side and avoid possible side movement.
One may buy the AUD/USD pair near the level of support of 0.9650 with a relatively low risk of 100 points, which means that we are putting stop-loss at a level of 0.9550-80, also one should open short-term positions for purchase with the aim of 0.9700-0.9800.Social button for Joomla