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Technical Analysis AUDUSD : 2020-07-07

Recommendation for AUD/USD:

Strong SellSellNeutralBuyStrong Buy

Above 0.6997

Buy Stop

Below 0.6832

Stop Loss

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Senior Analytical Expert
Articles 1571
RSI Neutral
Donchian Channel Buy
MA(200) Buy
Fractals Neutral
Parabolic SAR Buy

Chart Analysis

IFC Markets Tech Analysis

On daily timeframe AUDUSD: D1 is rising above the 200-day moving average MA(200) which has leveled off. We believe the bullish movement will continue after the price breaches above the upper bound of the Donchian channel at 0.6997. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 0.6832. After placing the order, the stop loss is to be moved to the next fractal low, 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

Australia’s retail sales increase continued in May. Will the AUDUSD advance continue?

Australia’s economic data in the last couple of weeks were positive on balance: the trade surplus rose to A$8.03 billion from 7.83 billion in April, and retail sales increase continued – 16.9% in May after 16.3% in April. And consumer prices recorded an uptick after a decline in May – the Melbourne Institute (MI) inflation gauge rose 0.6% over the month in June after a 1.2% decline in May. However services sector contraction continued in June – the Australian Industry Group (AIG) service index ticked down to 31.5 from 31.6 in May. Readings below 50.0 indicate contraction. Improving data are bullish for AUDUSD.

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