AUD/USD Makes Big Move Relative to Past Month, Down 248 Pips; in a Downtrend Over Past 90 Days

AUD/USD Price Recap

AUD/USD is down 248 pips (3.83%) since yesterday (with its current price near 0.62353), marking the 4th day in a row a decrease has occurred. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 86.83% from the day prior, and up 93.64% from the same day the week before. Those trading within the Forex asset class should know that AUD/USD was the worst performer in the class. Visually, we could say…

via GIPHY

Here’s another visual: a price chart of AUD/USD.

AUD/USD Technical Analysis

Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving down. For additional context, note that price has gone down 16 out of the past 30 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on AUDUSD, with 6 buy signals on our radar and 7 sell signals. This imputes a buy/sell ratio of 0.86, which is neutral. 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.

Sustained downside from this point may shine the spotlight on demand coming in at 0.5926/0.6062….level at 0.6241 elbowed its way into the spotlight Thursday and, in recent hours, staged a half-hearted recovery, stationed beneath resistance at 0.6314, Monday‚Äôs low….Structures of Interest:Monthly price shifting focus to demand at 0.6094/0.5866, after taking out the lower edge of demand at 0.6358/0.6839, daily price toying with the lower edge of demand at 0.6330/0.6245, H4 price failing to sustain gains past 0.6314 and H1 action retesting the underside of 0.63/channel resistance, could be enough to entice sellers into this market today and push for a run to 0.62.