The Australian dollar found support at 1.0287 daily fractal, the minimum of yesterday. This movement is that the Reserve Bank of Australia showed that there is still space to cut rates and because Chinese industrial production was below expectations, as we know China is Australia's largest partner in the export. Now, this morning in the U.S. session the pair faces the 1.0373 fractal, this level is key for the pair to recover positions against the U.S. dollar. If you have reviewed our previous reports, we anticipate the fall of this pair when the Momentum Indicator had broken the moving average of the MACD. However, if you look at the chart momentum indicator it is entering an oversold area, even though we believe this pair has to fall further, for the next few days. Therefore, at the current level we recommend selling with objectives to the next fractal 1.0224. On the other hand, a closure in 4 hours charts, above the 1.0373 fractal, you can buy with objectives to 1.0522 resistance.
If you need personal consultation, contact me via e-mail: gerardo.porras@analytics.instaforex.com
