Amid the rise in commodity prices, including iron ore and rising oil prices at the Asian session, the pair AUD/USD has been growing since the opening of the trading day on Monday.
However, the local rise in the pair will be a short-term correction in the upward channel on the 4-hour chart.
On the daily chart the AUD/USD remains in the downward channel with the bottom limit below the level of 0.6800.
On the daily chart the upper limit of the downward channel is near resistance level of 0.7225 (ЕМА144 on the daily chart). On the daily and 4-hour charts Stochastic is reversing towards the short positions.
In order to open safer short positions wait for breakdown of support level of поддержки 0.7100 (ЕМА50 on the daily chart and ЕМА200 and ЕМА144 on the 4-hour chart). In case of the further decline the pair can go to support levels of 0.6975 and 0.6950, which are crossed by middle line of the downward channel on the daily chart (0.6910), Fibonacci 0% to the last decline wave since 2014 and to the key support levels of 0.6350 and 0.6000 (lows of 2008 – 2009).
Fundamental data is causing instability of the financial markets and creates difficulties for the recovery of the global economy. The above factors and difference in the monetary policies of the US Fed and RBA trigger the decline in the AUD/USD in the medium-term.
Support levels: 0.7100, 0.7000, 0.6975, 0.6950, 0.6910 and 0.6860.
Resistance levels: 0.7225 and 0.7330.
Sell Stop: 0.7150.
Take-Profit: 0.7100, 0.6975, 0.6950, 0.6910, 0.6860, 0.6810.
Buy Stop: 0.7210.
Take-Profit: 0.7225, 0.7300.