AUD/USD: technical analysis and trading recommendations_01/10/2022


In response to the publication this morning of fresh data on the dynamics of building permits in Australia, the AUD strengthened, while the AUD / USD rose, heading towards the first important resistance level 0.7225 (ЕМА50 and the upper border of the descending channel on the daily chart). In general, the long-term negative dynamics of AUD / USD persists, including against the background of different directions of the monetary policy rates of the FRS and the RB of Australia. While the Fed has clearly indicated its commitment to accelerating the phasing out of the stimulating policy, the RBA still prefers to take a wait and see attitude.

Thus, the growing divergence in the direction of the rates of the FRS and RBA monetary policies comes to the fore, creating the preconditions for a further fall in AUD / USD. Although, as always, an unexpected scenario is not excluded. In this case, and after the breakdown of the resistance level of 0.7225, the corrective growth of the pair may continue towards local highs at the resistance level of 0.7280. A more distant target of the correction is at the key resistance levels 0.7320, 0.7345. Nevertheless, and in any case, below the resistance levels of 0.7320, 0.7345 AUD / USD is in the bear market zone, which makes short positions preferable. A breakdown of the local support level of 0.7130 will confirm this opinion and send AUD / USD inside the descending channel on the daily chart. And its lower border is near the 0.6800 mark. So - there is where to fall!

Support levels: 0.7170, 0.7130, 0.7085, 0.7037, 0.7000, 0.6900, 0.6800

Resistance levels: 0.7230, 0.7300, 0.7320, 0.7360

Trading Recommendations

Sell by market, Sell Stop 0.7170. Stop-Loss 0.7230. Take-Profit 0.7130, 0.7085, 0.7037, 0.7000, 0.6900, 0.6800

Buy Stop 0.7230. Stop-Loss 0.7170. Take-Profit 0.7280, 0.7300, 0.7320, 0.7340