08, July 2016

AUD/USD (a 4-hour chart)

 AUD/USD (a 4-hour chart)

General overview

The Australian dollar decreased when the rating agency S&P downgraded the Australian credit rating. The rating was downgraded from stable to negative.

Current situation

The AUD/USD decreased after wining back some of its losses on Wednesday. The instrument traded in a descending channel where the pair moved from its upper limit yesterday. The mark 0.7540 remains the key resistance for the pair which is defended by sellers as the pair has bounced from the level the second time within a week. The resistance is at 0.7500, the support comes in at 0.7400.

The moving averages (50, 100 and 200) are moving upwards. The price is approaching the 50-EMA in the 4 hours chart.

MACD decreased, if its histogram enters the negative zone it will be a sell signal. RSI is below the 50 level. If its signal line decreases we will get a sell signal.

Trading recommendations

The fundamentals pressured the Australian dollar. The price is expected to fall towards 0.7400 (the 200-EMA).