AUD/USD Analysis Report With Charting Trends – 04 September 2023
04 Sep 2023
AUD/USD forecast: The AUD/USD recovers from recent losses and maintains its current level of over 0.6450.
Following a loss in the previous session, the AUD/USD pair gained ground on Monday during the Asian session, trading higher at 0.6460. The United States (US) issued mixed employment statistics on Friday, which put negative pressure on the pair.
The Australian Dollar, meantime, is unable to benefit from August’s unexpectedly positive Caixin Manufacturing PMI. The economic data exceeded the 50-point cut-off that distinguishes expansion from contraction, coming in at 51.0 vs. predictions of 49.3 and the previous release of 49.2. Despite serving as a proxy for Chinese economic expectations, the Australian Dollar could not gain ground.
Future attention will be on the Reserve Bank of Australia’s (RBA) decision to set the interest rate, which will be made public on Tuesday. RBA Governor Philip Lowe will maintain interest rates at 4.10% but will leave the door open for further increases, according to a Reuters poll.
Exponential Moving Average
- EMA 5: The 5-day EMA stands at 0.6468, indicating a Sell signal.
- EMA 20: The 20-day EMA is at 0.6462, signaling a Sell sentiment.
- EMA 50: The 50-day EMA currently sits at 0.6474, suggesting a Sell indication.
Simple Moving Average
- SMA 5: The 5-day SMA shows a value of 0.6471, reinforcing the Sell recommendation.
- SMA 20: With a value of 0.6455, the 20-day SMA also supports a Buy sentiment.
- SMA 50: The 50-day SMA registers at 0.6447, affirming a Sell indication.
RSI (Relative Strength Index)
The RSI, calculated over a 14-day period, stands at 50.18, signifying a positive signal.
The %K value of the Stochastic Oscillator suggests a Negative stance.
Resistance And Support Levels
- Resistance: The resistance level is observed at 0.6482
- Support: The support level is identified at 0.6449
Summary And Trade Suggestions
In summary, the technical analysis of AUDUSD points towards a Sell sentiment. Considering the indicators, moving averages, and oscillators, it seems favorable for traders to enter a short position.
- Entry Point: 0.6417
- Take Profit: 0.6324
- Stop Loss: 0.6488