Australian Dollar: USD/AUD (AUD=X) receiving a boost from a firmer Chinese Yuan
The Australian Dollar is trading higher for a second session on Tuesday as firmer Asia Pacific stock markets point toward rising demand for risky assets. Furthermore, the beat-up Asian currencies are making a comeback on Tuesday, as investor risk appetite recovered on speculation the rate of coronavirus infection is apparently slowing down, even as the death toll rises.
The Aussie is also getting a boost from a firmer Chinese Yuan. The People’s Bank of China held its midpoint guidance relatively steady, even though the U.S. Dollar was up sharply overnight. China’s Yuan was firm at 6.9773 per dollar.
Daily Technical Forecast
Based on the early price action and the current price at .6714, the direction of the AUD/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the pivot at .6718.
A sustained move under .6718 will indicate the presence of sellers. It will also mean they are respecting the pivot as resistance. This could trigger a break back to the downtrending Gann angle at .6694.
Crossing to the weak side of the downtrending Gann angle at .6694 will put the AUD/USD in a bearish position with .6662 the next potential downside target.
A sustained move over .6718 will signal the presence of buyers. This could trigger a surge into a pair of downtrending Gann angles at .6734 and .6742. Look for sellers on the first test of this angles.
Overtaking .6742 could trigger a breakout to the upside with the main top at .6774 the next upside target.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 0.68.
The projected upper bound is: 0.68.
The projected lower bound is: 0.66.
The projected closing price is: 0.67.
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 22 white candles and 25 black candles for a net of 3 black candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 42.1512. This is not an overbought or oversold reading. 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 37.29. 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 2 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 -38. This is not a topping or bottoming area. The last signal was a buy 1 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 0 period(s) ago.
Rex Takasugi – TD Profile
FOREX AUD= closed up 0.000 at 0.671. Volume was 99% below average (consolidating) and Bollinger Bands were 45% wider than normal.
Open High Low Close Volume___
0.671 0.671 0.671 0.671 321
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.67 0.68 0.69
Volatility: 8 8 7
Volume: 50,351 47,853 62,462
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 2.1% 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 moderate flows of volume out of AUD= (mildly bearish). Our trend forecasting oscillators are currently bearish on AUD= and have had this outlook for the last 21 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.
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