Wednesday, 3 May 2017

Aussie rejected at the upper line of the short-term downtrend

The Aussie plummeted today and marked lowest level since January, having hit intraday low at 0.7418. It seems quite reasonable on the back of falling commodities, as base metals closed sharply down and gold posted lowest level for the last month and it’s all in common with the weakened Chinese demand. 
Technically speaking the AUD/USD pair was rejected at the upper line of the short-term downtrend. On the daily chart the 20-day SMA has started to turn to south. RSI and stochastic are displaying sharp bearish slopes and both are currently being below their mid-lines. 
The rally might extend to downwards, as price is well below 0.7490 (strong support that turned to be resistance now). Staying flat on this pair seems to be most reasonable now.






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