AUD/USD breaks to downside

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 35% 33% 5.71%
Shorts 65% 67% -3.08%
Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Buy Buy
RSI (14) Neutral Sell Sell
Stochastic (5; 3; 3) Sell Sell Sell
Alligator (13; 8; 5) Buy Buy Buy
SAR (0.02; 0.2) Sell Buy Buy
Aggregate

The Australian Dollar has broken out of the short term triangle pattern to the downside against the US Dollar. Due to that reason a full review of the situation on the pair's charts has been done. First of all it can be noted that the breakout to the downside could have been forecasted by examining the large scale situation and identifying a large scale ascending channel pattern. Due to that reason it is expected that a new medium term decline is about to occur. The next target for the pair would be the support cluster near the 0.7880 mark. However, before it will be reached the currency pair will face the support of the 55-hour SMA, which is located t the 0.7956 level. The simple moving average has proven in the past week that it is capable of forcing the pair into short term surges.

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