13, October 2016

AUD/USD (a 4-hour chart)

General overview

The commodity currencies strengthened following oil prices growth.

Current situation

After testing the lowest low since September 20 the pair had a sharp recovery in the Asian session on Wednesday. The Aussie was able to reverse the majority of its losses recorded on Tuesday. However, the bullish spike was short-lived, the AUD/USD pair remained under pressure. The price faced a downward pressure at the beginning of the New York session. According to the 4 hours chart the moving averages stopped the upward momentum. The moving averages narrowed maintaining their bearish slope. The 50-EMA is crossing the 100 and 200 EMAs downwards. The resistance is at 0.7600, the support stands at 0.7540.

MACD is in the negative area. MACD decreased which indicates the sellers’ strength. The RSI oscillator moved downwards.

Trading recommendations

The bearish trend remained intact. We believe the price will return to 0.7540 first. The next level to focus on is 0.7500.