Australian Dollar: USD/AUD (AUD=X) June Economic Sentiment data shocked market
The slump rally that had begun on June 9 got slightly diverted in today’s trading session. The pivotal point for the reversal was 0.6835 levels. The pair had started the day near 0.6855 levels and continued the downtrend. The early slip in the AUD/USD pair came in after the critical release of RBA meeting minutes.
The policymakers mentioned that the Bank would opt for reducing the interest rates again. Following such a dovish stance, the AUD/USD pair dropped nearly to the five-month bottom. China and Australia are good trading partners.
Meantime, Trump tweeted that “Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.” Hence, positive news on the US-China trade dispute front allowed the pair to recover the early morning losses. The Aussie pair soared 0.72% reaching day’s high near 0.6882 levels.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 0.70.
The projected lower bound is: 0.68.
The projected closing price is: 0.69.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 21 white candles and 28 black candles for a net of 7 black candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 15.5501. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 8 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 37.78. 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 21 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 -134.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 period(s) ago.
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 0.002 at 0.687. Volume was 17% below average (neutral) and Bollinger Bands were 11% narrower than normal.
Open High Low Close Volume___
0.685 0.688 0.683 0.687 78,410
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.69 0.70 0.71
Volatility: 6 7 9
Volume: 84,453 89,843 104,525
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.
FOREX AUD= is currently 3.3% 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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