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AUD/USD: Philip Low's comments caused the AUD to fall. Trading recommendations
![Yuri Papshev Yuri Papshev](https://c.mql5.com/avatar/2014/4/5342801B-DFCD.jpg)
The Australian dollar rose on Tuesday after the RBA meeting, because Low gave optimistic forecasts for GDP growth and inflation.
However, on Wednesday, the reverse trend of the Australian dollar is observed, which is falling, and the pair AUD / USD is trading at the beginning of the European session, near the 0.7135 mark, 100 points below the opening price of the trading day.
On Friday, the RBA is expected to publish lower forecasts of GDP growth. Philip Lowe said Wednesday that “China’s GDP growth slowdown is the most serious threat to the Australian economy. World events are the main source of risk for the Australian economy”, adding that “the economic situation in Australia may be worse than is commonly believed”.
Recently, data has been coming in from Australia indicating a sharp deterioration in business conditions, a fall in housing prices, a reduction in the number of constructions permits and employment announcements.
On Wednesday, AUD / USD broke through important short-term support levels of 0.7210 (EMA200 on the 1-hour chart), 0.7172 (EMA200 on the 4-hour chart, EMA50 on the daily chart) and continues to decline towards support levels of 0.7085, 0.7025.
On Friday (00:30 GMT), the RBA will comment on the prospects for its monetary policy. There will also be given forecasts regarding the further growth of the Australian economy, labor market, inflation. If forecasts turn out to be negative, then the Australian dollar and AUD / USD will continue to decline.
Long-term reduction targets are at support levels of 0.6910 (lows of September 2015), 0.6830 (lows of 2016).
Negative dynamics prevails; below the resistance level 0.7172 short positions are preferable.
Support Levels: 0.7100, 0.7085, 0.7025
Resistance Levels: 0.7172, 0.7210, 0.7245, 0.7295, 0.7385, 0.7460
Trading recommendations
Sell in the market. Stop Loss 0.7190. Take-Profit 0.7100, 0.7085, 0.7025, 0.6910, 0.6830
Buy Stop 0.7215. Stop Loss 0.7160. Take-Profit 0.7245, 0.7295, 0.7385, 0.7460
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