Timeframe - Intraday

Recommendation - SELL STOP

Entry Point - 0.7430

Take Profit - 0.7400, 0.7350

Stop Loss - 0.7460

Key Levels - 0.7300, 0.7350, 0.7400, 0.7440, 0.7500, 0.7570, 07630

Alternative scenario

Recommendation - BUY STOP

Entry Point - 0.7520

Take Profit - 0.7570, 0.7630

Stop Loss - 0.7490

Key Levels - 0.7300, 0.7350, 0.7400, 0.7440, 0.7500, 0.7570, 07630

Current trend

The Australian Dollar was growing yesterday amid the publication of the RBA Meeting's Minutes. The regulator has adopted a neutral stance, as it is quite satisfied with current economic conditions in the country. Thus, no rate cuts are to be expected in the nearest future.

However, the AUD/USD pair did not manage to consolidate above the level of 0.7500 and declined to 0.7450. The US Dollar gained support as Fed Chair Janet Yellen in her testimony to Congress was quite optimistic about the economy in the US.

Support and resistance

Doji pattern has formed on the daily chart that indicates the possibility of a decline. Upward dynamics might resume if the price consolidates above the level of 0.7500.

Stochastic is in the overbought zone. Bollinger Bands is directed up while the price range is showing no changes.

Support levels: 0.7440, 0.7400, 0.7350, 0.7300.

Resistance levels: 0.7500, 0.7570, 07630.

Trading tips

Short positions can be opened after the price consolidates below the level of 0.7440 with targets at 0.7400, 0.7350 and stop-loss at 0.7460.

Long positions can be opened from the level of 0.7520 with targets at 0.7570, 0.7630 and stop-loss at 0.7490.