Australian Dollar: USD/AUD (AUD=X) sinks against mixed U.S. currency
The Australian dollar eased against the greenback on Wednesday, despite the U.S. currency being mixed against most G10 currencies.
At 07:00 (AEST), the Australian dollar was buying 61.47 U.S. cents, down from 61.70 U.S. cents on Tuesday.
“AUD/USD’s sharpest price action was not linked to news or data, with its slide from 61.90 U.S. cents to (very briefly) 60.70 U.S. cents coming as a wave of U.S. dollars appeared to be bought in Tokyo on the final day of Japan’s fiscal year,” Westpac Bank economists said in a morning note.
The Aussie regained some of that ground in late trade on Tuesday, while the share market took a sharp turn to finish firmly lower.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 0.63.
The projected upper bound is: 0.63.
The projected lower bound is: 0.59.
The projected closing price is: 0.61.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 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 82.1462. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 8 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 43.26. 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 6 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 63. This is not a topping or bottoming area. The last signal was a buy 6 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 -0.001 at 0.613. Volume was 38% below average (neutral) and Bollinger Bands were 216% wider than normal.
Open High Low Close Volume___
0.613 0.616 0.611 0.613 40,570
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.60 0.65 0.68
Volatility: 18 20 12
Volume: 119,094 80,489 63,170
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 9.3% 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 56 periods.