Australian Dollar: USD/AUD (AUD=X) rallied towards the top of the shooting star

Australian Dollar: USD/AUD (AUD=X) rallied towards the top of the shooting star

Australian Dollar: USD/AUD (AUD=X) rallied towards the top of the shooting star

The Australian dollar rallied towards the top of the shooting star from the Monday session, which of course is a sign of strength. However, there is a certain amount of resistance above there that should continue to cause issues, so I would not be surprised to see this market roll over a bit from here.

The Australian dollar has rallied significantly during the trading session on Tuesday, reaching towards the top of the candle stick from the Monday session. At this point, it looks as if the sellers will probably come back in and push this market to the downside. The 0.7250 level is essentially “fair value” for the market, and therefore although we could go there, I think getting above there for any length of time is going to be an issue as we continue to see so much in the way of volatility.

Overall, the bias in prices is: Sideways

The projected upper bound is: 0.73.

The projected lower bound is: 0.71.

The projected closing price is: 0.72.

Candlesticks

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 23 white candles and 27 black candles for a net of 4 black candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with FOREX AUD=). It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

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 10.9503. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 5 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 45.29. 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 154 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 -90. This is not a topping or bottoming area. The last signal was a buy 0 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 3 period(s) ago.

Rex Takasugi – TD Profile

FOREX AUD= closed up 0.001 at 0.720. Volume was 1% above average (neutral) and Bollinger Bands were 18% narrower than normal.

Open High Low Close Volume___
0.719 0.722 0.718 0.720 114,686

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

Moving Averages: 10-period 50-period 200-period
Close: 0.73 0.72 0.74
Volatility: 11 11 10
Volume: 122,170 120,107 106,468

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 2.7% below its 200-period moving average and is in an downward 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 bearish on AUD= and have had this outlook for the last 0 periods.

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