Technical Analytics Report

AUD/USD: Technical Analysis Report 12 March 2021

AUD/USD: Technical Analysis Report 12 March 2021

 

Current Trend

 AUD is showing a weak downward correction against USD in today’s Asian session, retreating from local highs since March 4. The instrument’s positions are under pressure from technical factors, as well as rather strong macroeconomic statistics from the US on the dynamics of jobless claims. In addition, investors are reacting to Joe Biden’s long-awaited signing of the $ 1.9 trillion stimulus bill. In the course of the discussion, the stimulus package has undergone a number of changes. In particular, the increase in the minimum wage to $ 15 per hour at the federal level was removed from it.

 Today, investors are focused on statistics from the United States on the dynamics of Producer Price Index and the Michigan Consumer Sentiment Index.

 Support And Resistance

 Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is narrowing, reflecting appearance of multi-directional dynamics in the short/medium term. MACD has reversed to growth having formed a new buy signal (located above the signal line). The indicator is also trying to consolidate above the zero level. Stochastic keeps its steady upward direction but is approaching its highs rapidly, which reflects risks of the overbought AUD in the ultra-short term.

 Existing long positions should be kept until technical indicators are clarified.

 Resistance levels: 0.7804, 0.7840, 0.7867, 0.7900.

Support levels: 0.7750, 0.7721, 0.7675, 0.7641.

 Trading Tips

 ·         To open long positions, one can rely on the breakout of 0.7804. Take-profit – 0.7900. Stop-loss – 0.7750. Implementation time: 2-3 days.

·         A rebound from 0.7804 as from resistance, followed by a breakdown of 0.7750 may become a signal for new sales with the target at 0.7641. Stop-loss – 0.7804.

 Scenario

Timeframe: Intraday

Recommendation: Buy Stop

Entry Point: 0.7810

Take Profit: 0.7900

Stop Loss: 0.7750

Key Levels: 0.7641, 0.7675, 0.7721, 0.7750, 0.7804, 0.7840, 0.7867, 0.7900

 Alternative scenario

 Timeframe: Intraday

Recommendation: Sell Stop

Entry Point: 0.7745

Take Profit: 0.7641

Stop Loss: 0.7804

Key Levels: 0.7641, 0.7675, 0.7721, 0.7750, 0.7804, 0.7840, 0.7867, 0.7900

 

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