Australian Dollar: USD/AUD (AUD=X) at its highest in over a week near 0.6100
The AUD/USD pair is ending the day with gains around 0.6080, a fresh weekly high, underpinned by rallying equities and a weaker dollar in the last trading session of the day. The pair recovered from an early low of 0.5869, a result of the dismal mood that led markets throughout the first half of the day. Additional support came from gold, as the bright metal resumed its advance to trade as high as $1,643 a troy ounce. The commodity, however, eased ahead of the close amid Wall Street’s persistent strength. Australia won’t release relevant data this Friday.
AUD/USD short-term technical outlook
The AUD/USD pair is trading at daily highs, and the 4-hour chart shows that the 20 SMA has provided intraday support, maintaining its bullish strength below the current level. Technical indicators in the mentioned chart have bounced from around their midlines, the Momentum still heading higher and the RSI directionless at around 62. The 100 SMA keeps heading south above the current level, currently at 0.6190. The short-term picture favours a bullish continuation, although, in the longer run, the advance seems just corrective.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 0.64.
The projected upper bound is: 0.63.
The projected lower bound is: 0.59.
The projected closing price is: 0.61.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 21 white candles and 27 black candles for a net of 6 black candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 89.9153. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 42.62. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 3 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 9. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 0 period(s) ago.
Rex Takasugi – TD Profile
FOREX AUD= closed up 0.006 at 0.612. Volume was 53% below average (consolidating) and Bollinger Bands were 298% wider than normal.
Open High Low Close Volume___
0.606 0.613 0.603 0.612 29,040
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.59 0.65 0.68
Volatility: 33 20 12
Volume: 109,868 74,786 62,231
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX AUD= is currently 9.6% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of AUD= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AUD= and have had this outlook for the last 53 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.