Is The Australian Dollar Due For A Correction?

• 8 Mar 2018

AUD/CHF

The AUD/CHF pair has begun a strong bullish move, resulting in a break of the 20- period EMA. Heavy selling pressure in yesterday’s trading has pushed the pair to test the 0.739 resistance line. A momentum reversal is underway on MACD. A break of the 0.739 price level provides weight to the uptrend.

AUD/CAD

Consecutive breaks of the upper Bollinger band has resulted in a bearish candlestick for the first time in 8 trading sessions. At the same time, RSI has reached and is beginning to reverse from the 70 overbought line. If the current candle closes below the upper Bollinger band and below the 70 line on RSI, a bearish reversal is indicated.

EUR/AUD

The EUR/AUD pair has broken the upper Bollinger band to the downside as a result of heavy selling pressure in yesterday’s trading. RSI is also beginning a descent from the 70 resistance line which confirms bearish momentum. Fundamental factors later in the day are likely to impact near-term direction for the pair.

Impact event: Eurozone Interest Rate decision will be announced at 14:45 GMT+2 and will impact all Euro pairs.

AUD/USD

The AUD/USD pair has broken the trend-line to the upside with a strong bullish candle. The pair is also testing the 20- period EMA after further selling pressure. A series of doji candles does convey indecision in the market which also reflected in the neutral position of RSI. A bullish momentum reversal has begun on MACD.