Finotec

Forex Depth Analysis: AUD/USD

Aussie Looks In A Range Although Technical Shows End Of Momentum
The Australian dollar rose on Tuesday as signs of stability in equity and credit markets led some investors back to higher-yielding currencies, even as fresh data showed more weakness in the Australian economy.

The Aussie rose against the yen on the renewed appetite for risk, but lost a bit of steam later in the day as major Asian share markets extended losses.
A survey showing a sharp deterioration in Australian business conditions in March didn't move the Aussie, with analysts saying investors have already priced out any chance of a further interest rate rise, while a cut is seen as a long way off.

The buying point is at 0.9315; based on a break of a strong resistance.
* Previous resistance is the take profit at 0.9411
* Fibonacci 28.6% is the stop loss at 0.9242

The selling point is at 0.9270; based on a double top formation.
* Fibonacci 38.2% is the take profit at 0.9214
* Previous resistance is the stop loss at 0.9308

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice the crossing of MACD line to the signal line. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine that the market is in a bearish direction.

The momentum oscillator is very important to understand the strength of the market and as we see on the graph it is in a downtrend and breaks the zero level. Stochastic oscillator crosses %D line and breaks 80% level and continues to go lower.