Australian Dollar: USD/AUD (AUD=X) support underneath at the 0.68 level
The Australian dollar fell hard during the trading session on Tuesday, breaking down to the gap, showing extreme negativity. Quite frankly at this point I would be hesitant to buy this market, at least after what we have seen over the last 24 hours or so.
I do believe that there is massive support underneath at the 0.68 level though, so I would be much more interested in buying a supportive daily candle in that range. If we were to break down below there, it would signal an extremely negative sign when it comes to the US/China trade relations, and let’s face it we aren’t too far from that happening. I think this pair is going to simply be far too dangerous to put a lot of money into right now.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 0.70.
The projected upper bound is: 0.70.
The projected lower bound is: 0.68.
The projected closing price is: 0.69.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 2 white candles and 7 black candles for a net of 5 black candles. During the past 50 bars, there have been 21 white candles and 28 black candles for a net of 7 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 33.7206. This is not an overbought or oversold reading. The last signal was a buy 1 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 32.12. 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 -101.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 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 sell 21 period(s) ago.
Rex Takasugi – TD Profile
FOREX AUD= closed up 0.000 at 0.688. Volume was 99% below average (consolidating) and Bollinger Bands were 19% wider than normal.
Open High Low Close Volume___
0.688 0.689 0.688 0.688 769
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.69 0.71 0.71
Volatility: 7 8 10
Volume: 84,448 92,267 105,730
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 3.6% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 19 periods.
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