AUD/USD: the pair starts the week with a correction 16.10.2017

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NPBFX offers the latest release of analytics on the AUD/USD for a better understanding of the current market situation and more efficient trading.

Current trend

The AUD is falling against the USD during the morning session on October 16, while on Friday the pair was growing after the release of data from the US on consumer inflation and retail sales. Recall that the consumer price index in September rose by 0.5% MoM, which was the most significant growth in the last 8 months, but did not meet expectations of analysts (0.6% MoM). In annual terms, the growth of the index was 2.2% against the growth of 1.9% in August and with the forecast of 2.3%. Retail sales in September increased by 1.6% MoM after a decrease of 0.1% MoM in August due to the effects of the hurricanes. Experts predicted an increase of 1.7% MoM.

Today there are no interesting releases in the economic calendar, so the US dollar may win back the losses. Volatility on the market will increase on Tuesday after releases from US and Eurozone, as well as the minutes of the RBA meeting on interest rate.

Support and resistance

Bollinger Bands on the daily chart move sideways. The price range does not change. In the short term, a correction may be formed.

The MACD indicator keeps the buy signal (the histogram is located above the signal line).

Stochastic is approaching the maximum values, which indicates the formation of corrective dynamics in the near future.

Resistance levels: 0.7900, 0.7937, 0.7978, 0.7994.

Support levels: 0.7873, 0.7832, 0.7807, 0.7769.

Trading tips

To open long positions, you can rely on a breakout of the level of 0.7900. Take profit 0.7950-0.7975 or 0.8000. Stop loss 0.7850-0.7860. Term of realization: 2-3 days.

The development of corrective dynamics at the beginning of the week with a breakdown of 0.7832 may become a signal for further sales with the target of 0.7731. Stop loss 0.7873. Term of realization: 2-3 days.

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Use the current recommendations of analysts on AUD/USD and trade efficiently with NPBFX.