Technical analysis 12.10.18

AUDUSD

The pair is trading below 0.7130. The Reserve Bank of Australia announced that the Australian economy would have growth problems due to the US-China trade war, which indicates that they are not likely to raise the interest rates. Thus, as the Fed will continue doing that, the spread between the rates of the Fed and RBA will keep widening further not in favor of the Australian bank.

The price is above the middle Bollinger band, on the level of SMA5, but above SMA 14. RSI is indicating slower growth. Stoch also confirm that the price’s growth is likely to stall.

Trading recommendations:

The pair may drop to 0.7040 if it passes 0.7110.