AUDUSD is showing a crack
The AUDUSD
AUD/USD
AUD/USD is a currency pair comprising the Australian Commonwealth Dollar (symbol $, code AUD) and the United States Dollar (symbol $, code USD). The exchange rate of the pair indicates how many US dollars are needed to buy one Australian dollar. For example, when AUD/USD is trading at 0.7500, it means that 1 Australian dollar is equal to 0.75 USD. The Australian dollar (AUD) is the fifth most traded currency in the world, while the US dollar
AUD/USD is a currency pair comprising the Australian Commonwealth Dollar (symbol $, code AUD) and the United States Dollar (symbol $, code USD). The exchange rate of the pair indicates how many US dollars are needed to buy one Australian dollar. For example, when AUD/USD is trading at 0.7500, it means that 1 Australian dollar is equal to 0.75 USD. The Australian dollar (AUD) is the fifth most traded currency in the world, while the US dollar
Read this term up 10 of the last 11 trading days. The move from a low of 0.6457 on May 31st reached a high of 0.6899 today. That’s a move of 442 pips.
Technically, looking at the daily chart, the price today moved above the 61.8% retracement of the move down from the 2023 high. This retracement level is 0.68899. The highest price today reached 0.6899. The price is currently below the retracement level at 0.6856.
I don’t often look at relative strength index
Relative strength index
RSI is a momentum indicator, designed to measure both the speed and magnitude of price oscillations on a scale between 0 and 100. Developed by Wells Wilder as a technical analysis indicator, RSI was featured in his book “New Concepts in Technical Trading Systems”. ‘ in 1978. After its release, Wilder and his indicator were praised by a number of industry experts and magazines, claiming it to be one of the best technical indicators ever developed. Currently, traders still view the RSI as extreme
RSI is a momentum indicator, designed to measure both the speed and magnitude of price oscillations on a scale between 0 and 100. Developed by Wells Wilder as a technical analysis indicator, RSI was featured in his book “New Concepts in Technical Trading Systems”. ‘ in 1978. After its release, Wilder and his indicator were praised by a number of industry experts and magazines, claiming it to be one of the best technical indicators ever developed. Currently, traders still view the RSI as extreme
Read this term, but yesterday it reached the level of 72.51. This was the highest value since February 2021. From this perspective, the market is overbought.
DISCLAIMER: Overbought can cause MORE overbought in a trending market and the market has been evolving over the last 11 trading days. Having said that, if the price can stay below the 61.8% retracement at 0.68899, sellers have a modest chance of further probing lower “just because” 10 out of 11 days is a big extension. So the RSI is a secondary tool, but only if the price can stay below 0.6889.
Should there be additional selling, the 50% median from 2021 is the May high and high of 0.68073 and 0.6818, respectively. I would expect buyers to lean on this area.
The price extended above the upper channel trendline yesterday by drilling below the hourly chart and tried to hold above it during the Asian session and also part of the European session. However, the price has recently moved in the black below this rising trend line. This is also a small crack in the technical picture. Staying below the upper trend line is a slight downside.
AUDUSD back in channel on hourly chart