The AUDUSD currency pair on the Daily Chart has been in a downtrend since 1 September 2020 when it registered the high price at 0.74128. On 27 September 2020, the Aussie recorded the low price of 0.70274.
When applying Oscillator Analysis to the price chart, one can see that price is trading below the SMA 60 period Moving Average line, a fact which confirms the negative sentiment on Aussie.
Furthermore, the Moving Average/Convergence Divergence (MACD) Oscillator is recording values below the zero line, which hints that the bears have entered the scene.
Additionally, the Relative Strength Index (RSI) Oscillator registers values below the fifty line which indicates negative sentiment.
All three technical indicators are in agreement with regards to the downward bias of the Aussie.
Three price targets may be calculated upon applying the Fibonacci tool to the price chart.
- The first price target is estimated at 0.70964 (161.8%).
- The second price target is seen at 0.69432 (261.8%).
- The third price target is projected at 0.66953 (423.6%).
While the first target has already been breached, the Aussie is currently trading below the downtrend line. Its current price is 3.34 percent below last week’s close, after a sharp decline during a period of heavy selling.
Of course, supply and demand as well as the crowd sentiment will determine the future course of Aussie.
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