Australian Dollar: USD/AUD (AUD=X) is the stand out performer overnight

Australian Dollar: USD/AUD (AUD=X) is the stand out performer overnight

Australian Dollar: USD/AUD (AUD=X) is the stand out performer overnight

Bids in the dollar sees the pair surrender its gains from the employment report.

It was a short-lived run for buyers as the upbeat Aussie employment report saw price jump to a high of 0.7441 but ultimately failed to move any higher with the 23.6 retracement level @ 0.7443 providing resistance. It was an area which also helped to stall the highs seen last week.

Australia’s economy created 59,900 new jobs during the recent month, according to the Australian Bureau of Statistics, up from 13,400 in May and far ahead of the consensus for an increase of 16,700. This was by-far the highest number of new jobs created in any month of the year to date.

This left the unemployment rate steady at 5.4%, in-line with expectations, despite a simultaneous 0.2% increase in the participation rate that meant there were more Australians who are technically classified as unemployed during the period.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 0.75.

The projected lower bound is: 0.72.

The projected closing price is: 0.74.

Candlesticks

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 22 white candles and 28 black candles for a net of 6 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 38.1505. This is not an overbought or oversold reading. The last signal was a sell 7 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 41.62. 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 52 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 -128.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 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 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX AUD= closed down -0.000 at 0.736. Volume was 96% below average (consolidating) and Bollinger Bands were 45% narrower than normal.

Open High Low Close Volume___
0.735 0.736 0.735 0.736 4,413

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

Moving Averages: 10-period 50-period 200-period
Close: 0.74 0.75 0.77
Volatility: 10 10 9
Volume: 92,770 101,626 91,517

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 4.1% below its 200-period moving average and is in an downward trend. Volatility is low 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 23 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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