Is The Australian Dollar Losing Its Dominance Over Peers?

• 5 Sep 2017

 

 

 

AUD/CAD

 

The AUD/CAD pair has found support from the 20-period EMA which is currently holding price action around the 0.987 price level. MACD looks close to breaking the zero line which may indicate a spike in bullish momentum. Volume has also risen in recent trading sessions and RSI has an upward trajectory once again. Doji candles in the last two trading session indicate relative indecision for the pair, however, sentiment appears to have a positive bias.

 

 

 

GBP/AUD

 

The Australian dollar looks to have had some dominance over the Pound and prices have rejected both the 20 period EMA and the 1.629 resistance line. However, a potential reversal is indicated; the current hammer candlestick indicates that buyers are starting to come into the market as the pair establishes a market bottom. MACD appears to be turning less negative and RSI is approaching the 30 oversold area. Dropping volume could indicate exhaustion from sellers and that a breakout is imminent.

 

 

 

GBP/CHF

 

The GBP/CHF 1 hour chart also indicates that there may be a bullish reversal in the pair. MACD has flattened below the zero line, indicating stalling bearish momentum. RSI is approaching the 30 oversold area for the second time; with a double bounce also an indicator of a potential reversal. Further, an exhaustion gap mid-trend indicates that the current downtrend may be short-lived, as psychologically, the market will attempt to ‘fill the gap.’

 

 

 

EUR/AUD

 

The EUR/AUD pair has rejected both the 20-period EMA and the 1.495 price level. MACD is close to crossing the zero line with a marked downward trajectory. RSI has flattened below the 50 resistance level. Given current momentum appears to be bearish, the next likely price target for the pair is the 1.491 price level. Indications are that the pair will likely trade within the 1.491 and the 1.495 trading range in the near-term.