Positive Trade Balance Data Provides Support For Australian Dollar

• 3 May 2018

AUD/USD

The AUD/USD pair has begun to reverse a strongly bearish position. A gravestone doji candle signaled the reversal which has been followed by buying activity. Momentum indicators confirm a bullish reversal with RSI breaking the 30 support level and MACD turning more positive.

GBP/AUD

The buoyancy in the Australian dollar has also filtered through to the British Pound with a key support level at 1.820 being broken. Momentum indicators suggest that the bearish sentiment will continue as MACD approached the zero line.

AUD/CAD

The AUD/CAD pair shows the Australian Dollar turning more bullish with a break of the lower Bollinger band. A reversal on RSI accompanied the break, with MACD stalling in negative territory. A candle closing above the 30 support zone on RSI will be required to confirm the reversal.

NZD/USD

The NZD/USD is also recovering from a one month sell-off. A doji candle in the previous trading session signaled a trend change. Price action is now testing a previous support level at 0.701.  RSI is also testing the 30 support level and the spike in volume indicates buyers are returning to the pair.