USD/AUD (AUD=X) sits near the lower end of its daily trading range
- Dollar softer amid lingering trade war fears
- China central bank to keep yuan stable, helping cool-off market
- Canada dollar gains on manufacturing data, higher oil prices
- Mexico peso jumps on soothing words from president-elect
- U.S. holiday seen thinning trade
Major currencies marked time on Wednesday and the Chinese yuan recovered from 11-month lows after authorities took steps on Tuesday to calm financial markets rattled by trade war worries.
Both the yuan and Chinese equity markets have been on edge ahead of July 6, when U.S. tariffs on $34 billion worth of Chinese goods take effect. Beijing has said it will retaliate with tariffs on U.S. products.
The onshore yuan last traded at 6.6299 against the dollar, up 0.21 percent on the day, after opening at 6.6365.
The Australian dollar, which is considered a liquid proxy for China-related risk, took heart from solid domestic retail sales data and edged up to $0.7404, moving away from an 18-month trough around $0.7311.
The Australian and New Zealand dollars gained a respite from recent selling pressure on Wednesday, as Beijing’s efforts to stabilise its currency soothed sentiment just enough to spark profit-taking on U.S. dollar positions.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 0.75.
The projected upper bound is: 0.75.
The projected lower bound is: 0.73.
The projected closing price is: 0.74.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 53.4126. This is not an overbought or oversold reading. 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 41.77. 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 40 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 7. This is not a topping or bottoming area. The last signal was a buy 8 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 down -0.001 at 0.738. Volume was 7% above average (neutral) and Bollinger Bands were 47% wider than normal.
Open High Low Close Volume___
0.738 0.742 0.737 0.738 107,427
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.74 0.75 0.77
Volatility: 10 10 9
Volume: 103,099 101,244 89,806
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 4.2% below its 200-period moving average and is in an downward trend. Volatility is low 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 11 periods.
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