General Analysis
The Australian vs American dollar currency pair has shown a clear uptrend over the past few months without any significant corrections. This upward movement started in the beginning of 2017 and at present amounts to 600 points. However, last week the price reached the 0.7700 resistance level which for almost a year has had a serious impact on the price movement. Many times the price bounced back from this level and was never able to overcome it.
At the moment, the price has reached the 0.7700 resistance level once again. Two indicators show a confirmation of a signal to sell at the same time - the Stochastic and the moving average (14). The Stochastic shows a clear divergence for the last few price peaks, which is also a signal to sell short the AUD/USD. Also, the price crossed the moving average (14) from top to bottom and successfully entrenched below the line, which also indicates a bearish trend. We recommend opening short positions on the AUD/USD currency pair with the target points profit taking at levels 0.7570 and 0.7520.
