AUD/USD: technical analysis 12.02.2019

AUD/USD: technical analysis 12.02.2019

Current trend

AUD/USD is trading in a bear trend. Now the price is consolidating below a strong resistance near 0.7080 (Murray [0/8]). The downward trend will be restored after the price is set below the level of 0.7049 (Murray [-1/8]). In this case, the next targets of sellers will be the level of 0.7019 (Murray [-2/8]). There is a high chance of an upward rebound here, while its breakdown would allow the fall to continue. Alternatively, breakout of 0.7080 (middle line of Bollinger Bands) can accelerate the pair towards 0.7110 (Murray [1/8]) – 0.7141 (Murray [2/8]) resistance area.
According to technical indicators, the price can grow within the correction.
MACD volumes are decreasing in negative zone. Stochastics’ lines are pointed upwards.
Bollinger Bands are pointed sideways, reflecting the relative calmness of the markets.

Support and resistance

Support levels: 0.7049, 0.7019, 0.6990.

Resistance levels: 0.7080, 0.7110, 0.7141.

Trading recommendations

Long positions can be opened above the level of 0.7080 with the target at around 0.7110-0.7141 and stop-loss 0.7060.

Short positions can be opened below the level of 0.7049 with the target at around 0.7019-0.6990 and stop-loss 0.7066.