Technical analysis 12.07.18

AUDUSD

The pair is trading below the level of 0.7400 while remaining under pressure due to the escalating trade war between the US and China. It may restore its positions thanks to the somewhat increasing demand on risk assets and the profit taking, but most likely it will continue falling if it doesn’t hold above 0.7400.

The price is below the middle Bollinger band, above SMA 5, but below SMA 14. RSI is below the level of 50% and is indicating the possibility of an upward rebound. Stoch are leaving the oversold zone.

Trading recommendations:

If the price doesn’t pass 0.7400, it may continue falling down to 0.7335.