Tuesday 22 August 2017

AUD/USD No clear directional strength

AUD/USD is currently trading at 0.7907, down -0.38% for the day, having posted high at 0.7953 and daily low at 0.7898. 
However, the pair settled around 0.7940 during the European session before going down to above mentioned level as the US dollar became more attractive. This was largely weighed by the US positive data and the probability that Donald Trump could be re-assessing his tax reform plans.
On the other side, the Australia’s macro agenda has not much to offer this week, but iron ore and copper are keeping positive so this could support the Australian dollar.  
Technical readings on the four-hour time frame and not showing clear directional strength. The 20-day SMA moved few pips above the price, while the 100-day SMA is staying flat around 0.7915. Stochastic has sharply turned to south and is nearing extreme oversold territory. RSI is displaying neutral signs and has lost directional strength.
The short term outlook tend to be bearish without expectations below 0.7870, the current August low.




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