Australian Dollar: USD/AUD (AUD=X) downward pressure waiting for the Fed

Australian Dollar: USD/AUD (AUD=X) downward pressure waiting for the Fed

Australian Dollar: USD/AUD (AUD=X) downward pressure waiting for the Fed

Continued attempts for the Australian Dollar to US Dollar (AUD/USD) exchange rate to recover from its weekly lows have been limited, as the pair still trended just slightly above those lows at the time of writing on Wednesday afternoon.

Investors remained hesitant to buy the Australian Dollar (AUD) amid Reserve Bank of Australia (RBA) interest rate cut bets and weak Australian data.

Meanwhile, the US Dollar (USD) saw firm movement as investors highly anticipated the evening’s upcoming Federal Reserve policy decision.

US Dollar support was slightly strengthened in the afternoon by some stronger than expected US building permits and housing starts results from August.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 0.69.

The projected lower bound is: 0.67.

The projected closing price is: 0.68.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 21 white candles and 28 black candles for a net of 7 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 32.9999. This is not an overbought or oversold reading. The last signal was a sell 4 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 49.24. 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 29 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 18. This is not a topping or bottoming area. The last signal was a sell 3 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 23 period(s) ago.

Rex Takasugi – TD Profile

FOREX AUD= closed down -0.004 at 0.682. Volume was 14% below average (neutral) and Bollinger Bands were 11% wider than normal.

Open     High      Low     Close     Volume___
0.686 0.687 0.681 0.682 64,158
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 0.69 0.68 0.70
Volatility: 5 8 9
Volume: 67,715 67,888 88,947

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 2.7% below its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on AUD= and have had this outlook for the last 8 periods.

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