XAU/AUD Currency Pair Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
XAU/AUD currency pair downgraded to Sell Candidate
(Updated on Jun 26, 2024)
The XAU/AUD currency pair price fell by -0.95% on the last day (Wednesday, 26th Jun 2024) from A$3,489.51 to A$3,456.33. During the last trading day the currency pair fluctuated 1.46% from a day low at A$3,451.13 to a day high of A$3,501.55. The price has fallen in 7 of the last 10 days and is down by -1.19% for this period. Volume has increased on the last day by 32 thousand shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 260 thousand shares were bought and sold for approximately A$898.38 million.
The currency pair is moving within a wide and horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect XAU/AUD currency pair with a 90% probability to be traded between A$3,271.80 and A$3,641.90 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and currency pairs seldom manage to go directly from the bottom of a trend up to the top. Currency pairs turning up in the middle of a horizontal trend are therefore considered to be potential runners.
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XAUAUD Signals & Forecast
Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. The XAU/AUD currency pair holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at A$3,501.76 and A$3,531.07. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Friday, April 19, 2024, and so far it has fallen -7.19%. Further fall is indicated until a new bottom pivot has been found. Volume rose on falling prices yesterday. This may be an early warning and the currency pair should be followed more closely.
Support, Risk & Stop-loss for XAU/AUD currency pair
XAU/AUD finds support from accumulated volume at A$3,426.95 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
In general the currency pair tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the currency pair moved A$50.43 between high and low, or 1.46%. For the last week the currency pair has had daily average volatility of 1.26%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (XAUAUD) For The Upcoming Trading Day Of Thursday 27th
For the upcoming trading day on Thursday, 27th we expect XAU/AUD to open at A$3,469.67, and during the day (based on 14 day Average True Range), to move between A$3,418.96 and A$3,493.71, which gives a possible trading interval of +/-A$37.37 (+/-1.08%) up or down from last closing price. If XAU/AUD takes out the full calculated possible swing range there will be an estimated 2.16% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at A$3,471.05 (0.43%) than the support at A$3,426.95 (0.85%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is XAU/AUD currency pair A Buy?
XAU/AUD holds several negative signals and is within a wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this currency pair. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this currency pair since the last evaluation from a Hold/Accumulate to a Sell candidate.
Current score: -3.703 Sell Candidate Downgraded
Predicted Opening Price for XAU/AUD of Thursday, June 27, 2024
Fair opening price June 27, 2024 | Current price |
---|---|
A$3,469.67 ( 0.386%) | A$3,456.33 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for XAUAUD
Fibonacci Support & Resistance Levels
Level | Price | |
---|---|---|
R3 | 3,520.10 | 1.84% |
R2 | 3,500.83 | 1.29% |
R1 | 3,488.93 | 0.94% |
Price | 3,456.33 | |
S1 | 3,450.41 | -0.171% |
S2 | 3,438.51 | -0.516% |
S3 | 3,419.24 | -1.07% |
Accumulated Volume Support & Resistance Levels
Level | Price | |
---|---|---|
R3 | 3,526.35 | 2.03% |
R2 | 3,500.62 | 1.28% |
R1 | 3,471.05 | 0.426% |
Price | 3,456.33 | |
S1 | 3,426.95 | -0.85% |
S2 | 3,423.50 | -0.95% |
S3 | 3,361.27 | -2.75% |
FAQ
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