Australian Dollar: USD/AUD (AUD=X) hits 20-month low as Turkish crisis rattles markets

Australian Dollar: USD/AUD (AUD=X) hits 20-month low as Turkish crisis rattles markets

Australian Dollar: USD/AUD (AUD=X) hits 20-month low as Turkish crisis rattles markets

The Australian dollar fell to an 18-month low against the US dollar on Monday, as worries about an impending financial crisis in Turkey prompted selling in the currency with strategists warning of more downside ahead.

The Australian dollar fell 1 per cent at the end of last week and stumbled again on Monday to trade at US72.83¢, a level not seen since the beginning of 2017.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 0.75.

The projected upper bound is: 0.74.

The projected lower bound is: 0.71.

The projected closing price is: 0.73.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 11.5844. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 24 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 37.01. 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 69 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 -183.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 7 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

FOREX AUD= closed up 0.000 at 0.727. Volume was 95% below average (consolidating) and Bollinger Bands were 13% narrower than normal.

Open High Low Close Volume___
0.727 0.728 0.727 0.727 4,574

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

Moving Averages: 10-period 50-period 200-period
Close: 0.74 0.74 0.76
Volatility: 9 10 9
Volume: 88,959 99,584 94,019

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 4.9% 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 1 periods.

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