AUD/USD: technical analysis and trading recommendations_08/19/2021

 
 
 
 
 
 
 

At the beginning of today's European session, the AUD / USD pair is traded near 0.7160 mark, continuing to move within the descending channel on the daily chart and staying in the zone below the important resistance levels 0.7490 (ЕМА200 on the daily chart), 0.7510 (Fibonacci level 50% of the correction to the wave of the pair's decline from 0.9500 in July 2014 to 2020 lows near 0.5510).

On Tuesday, the price broke down another strong long-term support level 0.7335 (ЕМА200 on the weekly chart), and today - the lower line of the descending channel on the weekly chart passing through the 0.7250 mark, confirming the return of AUD / USD onto the long-term bear market.

Technical indicators OsMA and Stochastic on the daily, weekly, monthly charts also switched to the sellers' side, signaling the priority of long-term short positions.

Everything is in favor of a further decline in AUD / USD.

In an alternative scenario, the first signal for a reversal and renewal of the uptrend will be a breakdown of the short-term resistance level 0.7306 (ЕМА200 on the 1-hour chart).

However, only a convincing rise into the zone above the resistance levels 0.7490, 0.7510 will indicate the resumption of the long-term upward dynamics of the AUD / USD.

In the current situation, short positions are preferred. However, to enter them, it is better to wait for a pullback, at least to the resistance level 0.7230 (ЕМА200 on the 15-minute chart).

Support levels: 0.7145, 0.7037

Resistance levels: 0.7230, 0.7295, 0.7306, 0.7330, 0.7389, 0.7466, 0.7490, 0.7510

Trading Recommendations

Sell by market, Sell-Stop 0.7140. Sell Limit 0.7230. Stop-Loss 0.7255. Take-Profit 0.7100, 0.7040, 0.7000

Buy Stop 0.7255. Stop-Loss 0.7220. Take-Profit 0.7295, 0.7306, 0.7330, 0.7389, 0.7466, 0.7490