Recommendation:
Sell
Indicator Signal
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RSI Neutral
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MACD Sell
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Donchian Channel Buy
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MA(200) Sell
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Fractals Buy
Parabolic SAR Sell
Chart Analysis
On 1-hour timeframe AUDUSD: H1 is testing the 200-period moving average MA(200) which is falling itself. We believe the bearish momentum will continue after the price breaches below the lower bound of the Donchian channel at 0.668. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 0.671. After placing the order, the stop loss is to be moved to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis
Business conditions in Australia kept deteriorating in January though the National Australia Bank’s business confidence index ticked up to minus one from minus two in December. Will the AUDUSD continue declining?