AUD/USD Down 28 Pips; in a Downtrend Over Past 30 Days

AUD/USD Price Recap

A moment of silence, please, for the end of AUD/USD’s 3 day up streak; price ended yesterday down 28 pips (-0.41%) to finish the day at a rate of rate of 0.66853. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 58.44% from the day prior, but down 24.52% from the same day the week before. Relative to other instruments in the Forex asset class, AUD/USD ranked 34th yesterday in terms of percentage price change. Here is a price chart of AUD/USD.

AUD/USD Technical Analysis

Coming into today the current price of AUD/USD is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 51.8 pips away. Volatility for AUD/USD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. Or to simplify this another way, note that out of the past 10 days AUD/USD’s price has gone up 5 them.

A final note on correlations: over the past week, AUD/USD has been most correlated with AUD/JPY — a frequent scenario, considering AUD finds itself in both pairs. As for pairs with the least correlation, that belongs to GBP/CHF over the past 7 days, but EUR/CAD over a two week period.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on AUDUSD, with 28 buy signals on our radar and 12 sell signals. This imputes a buy/sell ratio of 2.33, 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.

STILL DOWN TRENDING MOVING ON THE CHANNEL