{"id":16837,"date":"2010-12-14T09:19:34","date_gmt":"2010-12-14T14:19:34","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=16837"},"modified":"2010-12-14T09:19:34","modified_gmt":"2010-12-14T14:19:34","slug":"audusd-poised-for-downward-correction","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/12\/14\/audusd-poised-for-downward-correction\/","title":{"rendered":"AUD\/USD Poised for Downward Correction"},"content":{"rendered":"<p><strong>By Dan Eduard<\/strong><\/p>\n<p>Over the last several weeks, the Australian dollar has been able to  capitalize on the poor economic situation in the United States and make  substantial gains against the USD.  Since the beginning of the month,  the AUD\/USD pair has moved up some 400 pips.<\/p>\n<p>Forexyard traders will be interested to  know that the pair may be due for a downward correction.  Technical data  indicates the cross is currently in overbought territory, meaning  bearish movement is likely.<\/p>\n<p>We will be looking at the 8-hour chart for AUD\/USD, provided by  Forexyard.  The technical indicators being used are the Williams Percent  Range, Stochastic Slow, and Relative Strength Index.<\/p>\n<p>1. Typically when the Williams Percent Range is over -20, it is a  clear indication that the instrument is overbought.  Here, we can see  the indicator is right around the -5 level, meaning a downward  correction may take place.<\/p>\n<p>2. Traders will want to keep a close eye on the Stochastic Slow, as  it is currently showing the pair approaching the overbought region.   Should the two lines intersect above the 80 level, it can be taken as a  clear signal of impending bearish pressure.<\/p>\n<p>3. Finally, the Relative Strength Index is currently right around the  75 level.  Anything above 70 is usually taken as a sign that the pair  could experience downward movement.  Now may be a great time for traders  to enter into sell positions at a great entry price, in order to  capitalize on the coming trend.<\/p>\n<p><a href=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/12\/tech-14.12.bmp\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/12\/tech-14.12.bmp\" alt=\"\" width=\"564\" height=\"521\" \/><\/a><\/p>\n<p><em><strong><a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\">Forex Market Analysis provided by ForexYard. <\/a><\/strong><\/em><em><strong><a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\"><br \/>\n<\/a><\/strong><\/em><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>Disclaimer: Trading <a title=\"Foreign Exchange\" href=\"..\/2010\/12\/\">Foreign Exchange<\/a> carries a high level of risk and                                                                                                                                                                                                                may         not          be                              suitable             for               all                                                investors.                            There                  is      a                                                                                  possibility                               that                                         you                          could                                   sustain  a                loss                      of         all                  of                      your                                                                          investment         and                                                              therefore        you                                                  should              not                                    invest                                    money               that                  you                                                cannot                                 afford    to                                          lose.           You                                             should                 be                         aware               of                                all                     the                   risks                                                             associated                        with                             Foreign                                           Exchange                                                trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the last several weeks, the Australian dollar has been able to capitalize on the poor economic situation in the United States and make substantial gains against the USD. Since the beginning of the month, the AUD\/USD pair has moved up some 400 pips.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-16837","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/16837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=16837"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/16837\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=16837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=16837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=16837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}