AUD/USD Moves Up For the 3rd Day In A Row, in a Downtrend Over Past 30 Days; is Inching Close to 20 Day Average

AUD/USD Price Recap

AUD/USD is up 23 pips (0.34%) since yesterday (with its current price near 0.67371), marking the 3rd day in a row an increase 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 up 1.16% from the day prior, but down 26.85% from the same day the week before. Out of the 40 instruments in the Forex asset class, AUD/USD ended up ranking 10th for the day in terms of day-over-day price change. The price chart of AUD/USD below illustrates.

AUD/USD Technical Analysis

Coming into today AUD/USD is now close to its 20, 50, 100 and 200 day moving averages, which may act as price barrier for the asset. 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 33 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 14 days AUD/USD’s price has gone up 7 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on AUDUSD, with 14 buy signals on our radar and 28 sell signals. This imputes a buy/sell ratio of 0.5, 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; below is a short snippet from it to give you a taste.

Price trapped in channel4H candles looking very bearishI’m expecting trade to complete at 0.66255