Australian Dollar: USD/AUD (AUD=X) Rallied Slightly Into The Weekend
The Australian dollar has initially dropped during the trading session on Friday, only to turn around and spike to the upside. Looking at the market, you can see that the Australian dollar has continued to be noisy, but as it is oversold it is very likely that the market will continue to cause a lot of headaches. That being said though, we should pay attention to the fact that the US dollar is on its back foot against multiple currencies, so the Australian dollar may have some catching up to do.
The Euro has exploded to the upside and that will put a lot of downward pressure on the value of the greenback anyway, so one could make an argument that this pair needs to play “catch up” with the greenback going forward, and therefore we could very well drive towards the 0.67 level. The 0.6775 level above continues offer resistance as well, so if we can clear that area it’s very likely that we go looking towards much higher levels.
The Euro has changed trends against the US dollar overall, and it looks very likely that the rest of the world will follow given enough time. This will be especially true if we get some type of good news coming out of Asia, which is starting to show a slowing of the infection rate of coronavirus. If we can turn the corner on that one, that might be enough to push the Australian dollar higher. In the short term, the 0.65 level is likely to offer a bit of support.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 0.67.
The projected upper bound is: 0.67.
The projected lower bound is: 0.65.
The projected closing price is: 0.66.
A black body occurred (because prices closed lower 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 19 white candles and 29 black candles for a net of 10 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 83.3332. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 42.93. 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 4 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 28. This is not a topping or bottoming area. The last signal was a buy 4 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 3 period(s) ago.
Rex Takasugi – TD Profile
FOREX AUD= closed down -0.005 at 0.660. Volume was 97% below average (consolidating) and Bollinger Bands were 28% wider than normal.
Open High Low Close Volume___
0.661 0.663 0.660 0.660 1,279
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.66 0.68 0.68
Volatility: 12 9 8
Volume: 68,579 55,927 60,102
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 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 39 periods.
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