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USD/CAD: technical analysis 16 July 2019, 11:19

USD/CAD: technical analysis 16 July 2019, 11:19 Scenario Timeframe Intraday Recommendation SELL STOP Entry Point 1.303...

May 15, 2019

AUD/USD: the Australian dollar is falling 15 May 2019, 10:20


Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.6955, 0.6965
Take Profit 0.7032, 0.7051
Stop Loss 0.6920
Key Levels 0.6870, 0.6900, 0.6920, 0.6936, 0.6960, 0.6984, 0.7000
Alternative scenario
Recommendation SELL STOP
Entry Point 0.6915
Take Profit 0.6870, 0.6850
Stop Loss 0.6950
Key Levels 0.6870, 0.6900, 0.6920, 0.6936, 0.6960, 0.6984, 0.7000
Current trend
AUD remains under pressure and is developing a downward trend against USD, updating local lows of the beginning of the year. The weakening of the instrument is facilitated by the tense situation around the US-China trade negotiations, which has noticeably deteriorated after the parties entered import duties against each other. The export-oriented Australian economy is very sensitive to changes in the dynamics of China's imports, so the risks for AUD also increased. Today, the pair is under pressure from the macroeconomic statistics from Australia and China. Westpac Consumer Sentiment in May slowed from +1.9% MoM to +0.6% MoM. Wage Price Index in Q1 2019 remained at the previous level of +0.5% QoQ, contrary to forecasts of growth to +0.6% QoQ. China reported a sharp slowdown in industrial production in April from +8.5 YoY to +5.4% YoY, with the forecast of +6.5% YoY.
Support and resistance
On the daily chart, Bollinger bands steadily decline. The price range expands but not as fast as the "bearish" dynamics develop. The MACD falls, keeping a relatively strong sell signal (located below the signal line). Stochastic is directed downwards but is in close proximity to its highs, which indicates that the instrument is oversold in the super short term.
It is better to keep current short positions in the short term until the situation becomes clearer.
Resistance levels: 0.6936, 0.6960, 0.6984, 0.7000.
Support levels: 0.6920, 0.6900, 0.6870.


Trading tips
Long positions can be opened after rebound from 0.6920 and a breakout of 0.6950–0.6960 with the targets at 0.7032–0.7051. Stop loss is 0.6920. Implementation period: 2–3 days.
Short positions can be opened after the breakdown of 0.6920 with the target at 0.6870 or 0.6850. Stop loss is 0.6950. Implementation period: 1–2 days.

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