The Australian dollar has stopped declining and is not undergoing correction. The level of 0.8660 is the last barrier preventing the pair from the further decline to the new lows. Throughout three weeks the pair has been trading in the channel of 0.8660-0.8840, testing both of its boundaries. Yesterday’s data on the US retail sales, which was below expectations, has triggered the rise in the pair to the level of 1.8855. However, the price has not maintained this level for long and in the evening session the pair traded at the level of 0.8730. Nevertheless, just before closing of the session, the pair sharply went up and reached yesterday’s highs. Many analysts believe that the level of 0.8660 will be soon broken down and the “bears” feel confident.
Let’s look at the technical indicators. At the moment the price is testing moving average lines with the periods 50 and 100. In case of breakdown of these levels the price will drop to the lower limit of the channel. Stochastic is in the overbought zone giving a sell signal.Publication source