Australian Dollar VS US Dollar, August 22nd, Daily Time-frame Hello, dear traders. Today we are going to analyze the Aussie against the US dollar chart. The currency pair has likely created a reversal pattern from 9-month peak at 0.9502 to recent support at 0.9240 and that is indicated by the falling trend line. However the currency couple could just be in a wide range between top at 0.9502 and bottom at 0.9207. Nevertheless, the support at 0.9240 represents a 161.8% Fibonacci extension of the up move from 0.9328 to 0.9471. The latter, suggests that we are looking at a falling structure and the support at 0.9240 is strong. Moreover, Simple Moving Averages formed a triple “death” cross adding to the negative bias expectation. Furthermore, at the below chart we can see the daily volumes of futures and options traded on the Chicago Mercantile Exchange. It is observable that on the last trading session the volume of trading is decreasing and that suggests the last upside candle could not be valid. Moreover the trading volume was increasing with bearish candles formation on the price chart. Looking at the oscillators, MACD is negative while at the moment is moving to its neutral level. The Stochastic is trading in neutral ground as prices are also in a range trading while the OsMA is gradually advancing. In our opinion, the oscillators at the time being are not so useful so we will concentrate more on the price pattern. In the shorter term we consider chances are favoring downside bias with prices likely to revisit support at 0.9240. However, we should be cautious due to the longer term indication of a range trading formation. Should the prices fall below the downside barrier at 0.9240 that will confirm the downtrend, electing the level at 0.9240 as the next target. infinmarkets/en/technical-analysis
Posted on: Fri, 22 Aug 2014 07:55:27 +0000
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