AUD/USD Down 123 Pips; in a Downtrend Over Past 14 Days

AUD/USD Price Recap

AUD/USD is down 123 pips (2.01%) since yesterday (with its current price near 0.59957), marking the 7th day in a row a decrease has occurred. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was down 14.22% from the day prior, but up 17.8% from the same day the week before. Out of the 40 instruments in the Forex asset class, AUD/USD ended up ranking 39th for the day in terms of day-over-day price change. Let’s take a look at price chart of AUD/USD.

AUD/USD Technical Analysis

Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving down. For additional context, note that price has gone down 8 out of the past 10 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on AUDUSD, with 24 buy signals on our radar and 10 sell signals. This imputes a buy/sell ratio of 2.4, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Daily timeframe:Partially altered from previous analysis – After AUD/USD powered through demand at 0.6330/0.6245 last week, the pair has since retested 0.6330/0.6245 as supply, challenged lows at 0.5958 and entered the walls of demand coming in at 0.5926/0.6062 (located within monthly demand at 0.6094/0.5866)….In terms of the RSI indicator, given the predominant downtrend in this market, the value continues to run through oversold terrain, unable to breach 50.0 to the upside….Note any short positions taken here, although in line with the primary downtrend, entails entering short into higher-timeframe demand.