Australian Dollar: USD/AUD (AUD=X) market continues to look bullish
The Australian dollar did very little during the day on Monday, but that’s not a huge surprise considering how bullish the move on Friday was. Overall, the market continues to look bullish in general, but we should also keep in mind that there are external factors that we need to pay attention to.
The Australian dollar did very little during the day on Monday to kick off the week, as we are approaching the vital 200 day EMA. This of course will attract a lot of technical and algorithmic traders, so it builds up a little bit of natural resistance. A pullback from here could make quite a bit of sense, but at this point it would almost certainly be some type of buying opportunity. We have the 50 day EMA underneath the candle stick for Friday and turning higher, so pullbacks will more than likely attract buyers near that level.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 0.71.
The projected upper bound is: 0.73.
The projected lower bound is: 0.71.
The projected closing price is: 0.72.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 25 black candles for a net of 1 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 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 67.2597. This is not an overbought or oversold reading. The last signal was a sell 2 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 58.31. 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 80 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 159.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 13 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 21 period(s) ago.
Rex Takasugi – TD Profile
FOREX AUD= closed up 0.000 at 0.717. Volume was 19% below average (neutral) and Bollinger Bands were 46% narrower than normal.
Open High Low Close Volume___
0.717 0.718 0.716 0.717 83,657
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.71 0.71 0.72
Volatility: 9 9 10
Volume: 92,228 100,482 107,704
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 0.3% below its 200-period moving average and is in an upward trend. Volatility is 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 14 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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