Stevens weakening Aussie
Tatiana Norkina, FBS analyst
Yesterday's statement of RBA Governor Stevens about a possible interest rates reduction has weakened the national currency significantly. Well enough, the pair had already been on a powerful resistance level, in the 0.7800/50 area. Therefore, the bulls on the AUD/USD pair have immediately decided to get rid of long positions. As a result, the currency pair rate has plummeted into the cloud zone on the four-hour timeframe, currently trading below the 77th figure.
Ichimoku cloud, having barely managed to change for the bullish, has narrowed to a minimum. The golden cross formed by the Tenkan and Kijun lines is fading away too. We assume that, under such circumstances, trades will be conducted with a negative attitude in the near future.
Technical levels: support – 0.7700; resistance – 0.7735, 0.7760.
1. Sell — 0.7735; SL — 0.7760; TP1 — 0.7670; TP2 — 0.7620.