AUD/USD Down 7 Pips; in a Downtrend Over Past 30 Days

AUD/USD Price Recap

AUD/USD is down 7 pips (0.11%) since yesterday (with its current price near 0.67121), marking the 2nd day in a row a decline has happened. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 30.7% from the day before — and down 41.35% from the same day the week before. Relative to other instruments in the Forex asset class, AUD/USD ranked 28th yesterday in terms of percentage price change. The price chart of AUD/USD below illustrates.

AUD/USD Technical Analysis

Notably, AUD/USD is now close to its 20, 50, 100 and 200 day averages, located at 0.6753, 0.684, 0.6825 and 0.6855 respectively, and thus may be at a key juncture along those timeframes. 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 41 pips away. Volatility for AUD/USD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. 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 6 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on AUDUSD, with 11 buy signals on our radar and 17 sell signals. This imputes a buy/sell ratio of 0.65, which is bearish. 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.

https://www.tradingview.com/x/AGtKoFeB/hey traders,Saint Valentine’s day….The day when we all should stay with our beloved ones….on 1H we see a classic descending triangle formation with multiple attempts of the market to break through the 0.6713 support.