15, July 2016

AUD/USD (a 4-hour chart)

AUD/USD (a 4-hour chart)

General overview

The AUD strengthened after the positive Consumer Inflation Expectation report. Later the pair suffered a short lived downward movement after negative labour market data.

Current situation

Technically, the instrument is in an ascending channel, close to its upper limit. In general, the pair was in a buy mode and remained at the week highs. The AUD was unable to break the level 0.7650 and traded in a narrow corridor between 0.7650 and 0.7600. The resistance is at 0.7700, the support comes in at 0.7600.

MACD is in the positive area. Its histogram decreased which indicates the buyers’ positions weakening. RSI is in the neutral territory and gives no signal.

The instrument is above the 50, 100 and 200 EMAs which are moving upwards in the 4 hours chart. The 1 hour chart shows the similar picture, the 50, 100 and 200 EMAs are parallel to each other and are growing. The 200-EMA is a support for the AUD/USD.

Trading recommendations

We expect markets to stay fairly neutral with short-term bounces downwards to 0.7600 and 0.7550.