The Australian dollar dropped in the range as Australian inflation missed expectations. What’s next? Australia’s trade balance and retail sales stand out. Here are the highlights of the week and an updated technical analysis for AUD/USD.
Australia’s quarterly inflation report showed an increase of only 0.4%, below expectations. This will keep the RBA sitting on its hands for some time. In the US, GDP was the highest in four years but below the overhyped expectations. The easing of trade tensions helped the Aussie stabilize.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 0.75.
The projected lower bound is: 0.73.
The projected closing price is: 0.74.
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 23 white candles and 27 black candles for a net of 4 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 59.5535. This is not an overbought or oversold reading. The last signal was a sell 12 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 48.00. 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 57 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 -42. This is not a topping or bottoming area. The last signal was a sell 12 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 buy 17 period(s) ago.
Rex Takasugi – TD Profile
FOREX AUD= closed up 0.002 at 0.740. Volume was 6% below average (neutral) and Bollinger Bands were 47% narrower than normal.
Open High Low Close Volume___
0.738 0.741 0.737 0.740 94,827
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.74 0.75 0.77
Volatility: 11 11 10
Volume: 106,757 104,246 92,925
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 3.4% below its 200-period moving average and is in an upward 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 bullish on AUD= and have had this outlook for the last 0 periods.
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