Australian Dollar: USD/AUD (AUD=X) received a boost from an increase in risk appetite

Australian Dollar: USD/AUD (AUD=X) received a boost from an increase in risk appetite

Australian Dollar: USD/AUD (AUD=X) received a boost from an increase in risk appetite

The Australian Dollar received a boost from an increase in risk appetite last week, on the back of what were at the time easing trade war tensions and better than expected employment figures. While the global growth outlooked has soured with the new escalation in US-China trade war, the AUD/USD has benefited from an out of vogue greenback, forming a range between 0.7150 and 0.7200.

The story isn’t quite the same across the other major Aussie Dollar pairs, with safe-haven plays into the EUR and GBP (along, of course, with the perennial risk-off favourite, JPY) by virtue of greater optimism regarding Brexit and the region’s growth prospects forcing the AUD lower against those currencies.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 0.74.

The projected upper bound is: 0.74.

The projected lower bound is: 0.71.

The projected closing price is: 0.73.

Candlesticks

During the past 10 bars, there have been 7 white candles and 2 black candles for a net of 5 white candles. During the past 50 bars, there have been 28 white candles and 21 black candles for a net of 7 white candles.

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 90.9977. 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 52.60. 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 96 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 168.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 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 buy 3 period(s) ago.

Rex Takasugi – TD Profile

FOREX AUD= closed down -0.000 at 0.726. Volume was 97% below average (consolidating) and Bollinger Bands were 27% wider than normal.

Open High Low Close Volume___
0.726 0.727 0.725 0.726 3,281

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

Moving Averages: 10-period 50-period 200-period
Close: 0.72 0.73 0.76
Volatility: 11 11 10
Volume: 86,965 100,790 97,552

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 4.4% 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 28 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH