AUDUSD Forecast | Lower commodity prices bearish for AUDUSD | IFCM

Technical Analysis AUDUSD : 2020-04-01

Recommendation for AUD/USD:

Strong SellSellNeutralBuyStrong Buy

Below 0.6051

Sell Stop

Above 0.6136

Stop Loss

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Senior Analytical Expert
Articles 1557
RSI Neutral
Donchian Channel Sell
MA(200) Buy
Fractals Sell
Parabolic SAR Sell

Chart Analysis

IFC Markets Tech Analysis

On 1-hour timeframe AUDUSD: H1 is falling toward the 200-period moving average MA(200) which is levelling off. We believe the bearish movement will continue after the price breaches below the lower bound of the Donchian channel at 0.6051. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 0.6136. After placing the order, the stop loss is to be moved to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis

Commodity prices decline steepened in March. Will the AUDUSD continue sliding?

Reserve Bank of Australia reported commodity prices decline deepened in March: exported commodity prices dropped 10.2% year over year following a 6% decline in February. Falling prices for commodities which account for over half of Australia’s export earnings. This is bearish for AUDUSD.

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