29, June 2016

AUD/USD (a 4-hour chart)

AUD/USD (a 4-hour chart)

General overview

On Tuesday, the dollar fell against other major currencies when the fears regarding British exit from the European Union began weakening and investors returned to the risky assets, such as the AUD/USD.

Current situation

The pair made an attempt to recover and reached the level 0.7400. The mark 0.74000 became the pivot point where the price returned to a decrease. The resistance exists at 0.7400, the support lies at 0.7270.

MACD is in the negative area, its histogram dropped. If the indicator decreases again the pair will fall further. RSI is close to the oversold level. If the oscillator moves south that will be a sell signal. The 50- moving average was the resistance that did not let the pair to grow. The pair bounced below 50, 100 and 200 moving averages which are moving downwards.

Trading recommendations

We remain bearish on the outlook for the currency. The nearest target remained the support level 0.7270. In the scenario where the buyers take control over the market the instrument will grow to 0.7400 – 0.7500.