FX.co ★ AUDUSD: Daily analysis for August 01, 2013

Daily chart: The AUD/USD pair is trying to break the support at the 0.8960 level. If the pair manages to break that level, it is expected to fall to the level of 0.8768, which would strengthen the current trend bearish. On the other hand, it is possible that AUDUSD rises again until the resistance level at 0.9201 and if it break, it is expected to rise to the level of 0.9349. The AUDUSD pair stays below the 200-day moving average and the MACD indicator is in extreme overbought and entering negative territory, which would strengthen our bearish outlook for this pair.

H4 chart: The AUDUSD pair is trying to form a higher low pattern, below the resistance level of 0.8997. One would expect this pair to fall to the level of 0.8915, where there is a bearish trend line. If the pair manages to break that trend line, it is expected to fall to extend to the level of 0.8675. On the other hand, if AUDUSD manages to break the resistance at 0.8997 level, it would be expected to rise to the level of 0.9037. The MACD indicator is entering oversold levels, so we must be very careful with this pair, because AUDUSD could change its trend, although this is not possible at the moment.

H1 chart: At current levels a Point of Control (POC) was formed by strong support in this pair. This POC is very close to the support at 0.8929 level. For this pair, it is very difficult to break that level and now AUDUSD is making a bullish rebound, which possibly achieves up to resistance level at 0.9020. Anyway, if the Aussie manages to break the support at the 0.8929 level, it is expected to fall to the level of 0.8878. The MACD indicator is in neutral territory, so we must be careful with this pair.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the AUD/USD pair breaks a bearish candlestick; the support level is at 0.8929, take profit is at 0.8868, and stop loss is at 0.8988.