AUD/USD: technical analysis and trading recommendations_10/04/2021


Today AUD / USD is growing for the third day in a row, has bouncing off local 5-week lows near 0.7175 level, reached at the end of last month.

As of this writing, AUD / USD is traded near 0.7270 mark, below the important short-term resistance levels 0.7371 (EMA200 on the 4-hour chart), 0.7330 (EMA50 on the daily chart, EMA200 on the weekly chart).

Despite the current growth, AUD / USD remains in the bear market zone, below the key resistance level 0.7435 (ЕМА144, ЕМА200 on the daily chart).

The breakdown of the short-term support level 0.7252 (ЕМА200 on the 1-hour chart) will be a signal for the resumption of short positions with intermediate targets at support levels 0.7175, 0.7037 (Fibonacci 38.2% retracement to the wave of the pair's decline from 0.9500 in July 2014 to 2020 lows year near the 0.5510 mark), 0.6900 (the lower line of the descending channel on the weekly chart).

In an alternative scenario, AUD / USD will continue to rise towards the upper border of the descending channel on the weekly chart and the resistance level 0.7435. Growth above this mark is not yet considered: the pair is in a long-term downtrend amid strong fundamental factors. Only a breakdown of the resistance level 0.7510 (50% Fibonacci level) will indicate the resumption of the long-term upward trend in AUD / USD and its return to the bullish long-term market.

Support levels: 0.7252, 0.7175, 0.7115, 0.7037

Resistance levels: 0.7290, 0.7301, 0.7330, 0.7435, 0.7480, 0.7510

Trading Recommendations

Sell-Stop 0.7245. Stop-Loss 0.7310. Take-Profit 0.7200, 0.7175, 0.7115, 0.7037

Buy Stop 0.7310. Stop-Loss 0.7245. Take-Profit 0.7330, 0.7435, 0.7480, 0.7510