AUD/USD Heads Down For the 3rd Day In A Row, in a Downtrend Over Past 30 Days; Price Base in Formation Over Past 14 Days

AUD/USD Price Recap

AUD/USD is down 20 pips (0.32%) since yesterday (with its current price near 0.64837), marking the 3rd 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 18.74% from the day prior, but up 7.77% from the same day the week before. Out of the 40 instruments in the Forex asset class, AUD/USD ended up ranking 25th for the day in terms of day-over-day price change. Below is a price chart of AUD/USD.

AUD/USD Technical Analysis

Coming into today AUD/USD is now close to its 20 day moving averages, which may act as price barrier for the asset. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. Price action traders in particular will want to note that the 14 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. Or to simplify this another way, note that out of the past 30 days AUD/USD’s price has gone down 16 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on AUDUSD, with 6 buy signals on our radar and 13 sell signals. This imputes a buy/sell ratio of 0.46, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a relative strength index technical pattern. Here’s a piece we found on dailyfx.com; below is a short snippet from it to give you a taste.

The RSI offers a mixed outlook following the AUD/USD flash crash as the oscillator deviates with price and breaks out of the downward trend from earlier this year.