AUD/USD Underperforms All Forex, Makes Big Move Relative to Past Month; Down 248 Pips

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 it has gone down. 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. Here is 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 6 out of the past 10 days.

A final note on correlations: over the past 7 days, AUD/USD has been most correlated with USD/CNH — a common occurrence, given the presence of USD in both currency pairs. On the flip side, in terms of pairs with the least correlation to AUD/USD, USD/CNH is the pair that holds that distinction for the past week, while USD/HKD does on a two week basis.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on AUDUSD, with 7 buy signals on our radar and 4 sell signals. This imputes a buy/sell ratio of 1.75, 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.

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.