Australian Dollar: USD/AUD (AUD=X) traders seem to be shrugging off concerns over U.S.-China trade relations
The Australian Dollar is edging higher on Tuesday, bucking the weaker trend in the global financial markets. Traders also seem to be shrugging off concerns over U.S.-China trade relations that appear to be having a slightly negative effect on higher-risk assets.
Helping to underpin the Aussie is a slightly stronger Chinese yuan, which found a little traction after the People’s Bank of China (PBOC) set a midpoint rate at a fresh 11-year low but a level that was firmer than expected.
The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom at .6677 on August 7.
A trade through .6677 will negate the reversal bottom and signal a resumption of the downtrend.
The minor trend is also down. A trade through .6821 will change the minor trend to up. This will also confirm the shift in momentum.
The minor range is .6677 to .6821. Its 50% level or pivot at .6749 is controlling the short-term direction of the AUD/USD.
The main range is .7082 to .6677. If the minor trend changes to up on a move through .6821 then its retracement zone at .6880 to .6927 will become the primary upside target.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 0.69.
The projected upper bound is: 0.69.
The projected lower bound is: 0.67.
The projected closing price is: 0.68.
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 20 white candles and 30 black candles for a net of 10 black candles.
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 69.3875. This is not an overbought or oversold reading. The last signal was a buy 4 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 38.38. 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 3 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 -46. This is not a topping or bottoming area. The last signal was a buy 3 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 14 period(s) ago.
Rex Takasugi – TD Profile
FOREX AUD= closed up 0.004 at 0.679. Volume was 3% above average (neutral) and Bollinger Bands were 111% wider than normal.
Open High Low Close Volume___
0.675 0.682 0.674 0.679 82,691
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.68 0.69 0.71
Volatility: 8 8 9
Volume: 76,631 71,289 95,679
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 3.9% 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 12 periods.
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