Technical Analysis 06.12.2018

AUDUSD

The pair is under pressure due to the large-scale drop in demand for risk assets caused by investors’ concerns over the continuing slowdown in global economic growth. The markets also doubt that the  US-China deal reached in Argentina will stop the trade war between the countries.

The price is below the middle Bollinger band, below SMA 5 and SMA 14. RSI is on the level of the oversold territory and is indicating slower decrease. Stoch are in the oversold zone and aren’t informative.

Trading recommendations:

The pair may correct to 0.7250, but if it retains this level, it may resume the drop to 0.7165.