AUD / USD: the pair fall

Current trend

In the markets again prevailed
uncertainty. Since the beginning of the week the price of copper is rapidly declining. Copper
often regarded as an indicator of the state of the world economy, and thus
way market participants at the time of the alleged deterioration of the world
economic situation that, in turn, led to a surge in demand for the yen and
US government bonds.

Today there was one more occasion for
concern: the index PMI Caixin of China did not meet production forecasts
Analysts said that the slowdown of the economy. Price Australian
the dollar is largely dependent on exports of metals, and China is
one of the largest metals consumer. Thus, there are all
reason to expect further reduction pair AUD / USD.

Support and resistance levels

On the weekly chart, the price strayed from
strong resistance level of 0.7200 and is now declining. RSI is already
for the second time failed to overcome the level of support, and now the indicator approaches
a moving average. Composite Indicator, however, is growing, spreading,
thus with RSI and price. Both indicators sliding short
the average is below the longer, which shows a certain weakness
market.

On the daily chart the sliding short
the average is above the long one. Composite Indicator has done much more
path than RSI, warning of a possible consolidation
prices. Composite Indicator on the 4-hour chart razosholsya with the price and RSI and
It is preparing to test a long moving average, which clearly indicates
on a sure decline, unless the moving average will not be broken.

Support levels: 0.7032 (zone
bustling center average power), 0.7014 (average force bustling center area), 0.6993 (strong
bustling center area), 0.6276 (the strongest bustling center zone).

Resistance levels: 0.7084 (high
trading volume), 0.7171 (the highest volume of trading), 0.7209 (strong zone
bustling center), 1.1317 (strong bustling center zone).

trade recommendations

Short positions should be open by the current
levels with targets 0.7033, 0.7015, 0.6996, 0.6950 and stop-loss at the level of 0.7089.
Relevance - 1-2 days.

You can open long positions on the
level of 0.7180 and 0.7273 for the purpose stop loss at around 0.7125. Relevance -
2-3 days.