Australian Dollar: USD/AUD (AUD=X) Weakness Sustained
The Aussie pair kept the downtrend rally intact that had triggered since the start of 2019. The primary focus of the day remained over the RBA Interest Rate Decision.
The policymakers held the rates at an all-time low near 1%, forecasting the trade tensions to worsen, compelling for a rate cut before year-end. Earlier, the RBA had executed quarter-point cuts in June and July. Meanwhile, RBA Governor Philip Lowe justified that the stance of keeping lower rates for longer-term borrowings would boost employment growth and inflation.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 0.69.
The projected upper bound is: 0.68.
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 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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 22.8796. This is not an overbought or oversold reading. The last signal was a buy 0 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 28.19. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 57 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 -114.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 12 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 10 period(s) ago.
Rex Takasugi – TD Profile
FOREX AUD= closed up 0.001 at 0.677. Volume was 4% below average (neutral) and Bollinger Bands were 121% wider than normal.
Open High Low Close Volume___
0.676 0.678 0.668 0.677 77,211
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: 5 8 9
Volume: 62,067 72,552 96,386
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 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 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 8 periods. Our momentum oscillator is currently indicating that AUD= is currently in an oversold condition.
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