Australian Dollar: USD/AUD (AUD=X) continues to weaken following breakdown

Australian Dollar: USD/AUD (AUD=X) continues to weaken following breakdown

Australian Dollar: USD/AUD (AUD=X) continues to weaken following breakdown

AUD/USD has been moving lower following a fall below the $0.7307 swing low earlier in the week. The pair has a clearly defined downtrend, which should remain unless we see a rally through the $0.7362 mark.

On the flip side, with higher lows and lower highs in play over the past fortnight, a drop below $0.7237 would provide greater confidence of another bearish breakdown for the pair.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 0.74.

The projected upper bound is: 0.74.

The projected lower bound is: 0.71.

The projected closing price is: 0.73.

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 26 white candles and 24 black candles for a net of 2 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 51.9279. This is not an overbought or oversold reading. The last signal was a sell 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 42.15. 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 81 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 -47. This is not a topping or bottoming area. The last signal was a buy 9 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 7 period(s) ago.

Rex Takasugi – TD Profile

FOREX AUD= closed down -0.005 at 0.726. Volume was 8% above average (neutral) and Bollinger Bands were 1% narrower than normal.

Open High Low Close Volume___
0.731 0.731 0.725 0.726 111,106

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 0.73 0.74 0.76
Volatility: 13 11 10
Volume: 106,959 104,013 96,543

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 4.8% 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 13 periods.

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