Australian Dollar: USD/AUD (AUD=X) continues to plummet

Australian Dollar: USD/AUD (AUD=X) continues to plummet

Australian Dollar: USD/AUD (AUD=X) continues to plummet

The Australian dollar continues to plummet as the US dollar attract quite a bit of money coming into the country. The US economy outperforms all of the other major once, so therefore it should not be surprised at all to see the Aussie dollar falling. Furthermore, the RBA meeting minutes were released in they show a lot of concerns around the world. The Australians are more than likely going to be cutting rates, and that of course weighs upon the Aussie dollar against what is the strongest economy out there.

The Australian dollar will eventually go looking towards the lows again, and if we can break down below that level it’s likely that the consolidation that extends down to the 0.63 level, which is the bottom of the range for the financial crisis. That of course is going to attract a lot of attention but quite frankly the Australian dollar seems to be unable to continue any type of significant rally. All things being equal, the market looks as if it has a major resistance barrier in the form of the 0.6775 handle, and if we can break above there then it’s likely that the market could go looking towards the 0.70 level above. All things being equal though, it looks like short-term rallies will be selling opportunities, perhaps reaching down to the bottom of the consolidation range, but one would have to think that the market is eventually trying to form some type of bottoming pattern. It is a bit difficult to get overly bearish at this point but short-term traits to the downside may continue to work out.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 0.68.

The projected upper bound is: 0.68.

The projected lower bound is: 0.66.

The projected closing price is: 0.67.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 22 white candles and 25 black candles for a net of 3 black candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 43.8522. This is not an overbought or oversold reading. The last signal was a buy 10 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 34.99. 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 6 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 -91. This is not a topping or bottoming area. The last signal was a buy 5 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 4 period(s) ago.

Rex Takasugi – TD Profile

FOREX AUD= closed down -0.003 at 0.669. Volume was 0% above average (neutral) and Bollinger Bands were 1% wider than normal.

Open     High      Low     Close     Volume___
0.671 0.672 0.667 0.669 48,785
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 0.67 0.68 0.69
Volatility: 7 8 7
Volume: 51,420 49,061 61,734

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.

Summary

FOREX AUD= is currently 2.4% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 25 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.