How do technical analysts use chart patterns?

Technical analysts also look at moving average convergence divergence (MACD). Chart patterns can be used to predict the direction of prices, areas of support or resistance and price breakout and breakdown points. While line charts and bar charts are sometimes used, most technical analysts use candlestick charts.

What is an AUD/USD pair?

The AUD/USD pair is the abbreviated term for the Australian dollar and the US dollar, nicknamed Aussie or the Aussie dollar. Before we get into the particulars, what exactly does the term AUD/USD mean? The exchange rate tells you how many US dollars (quote currency) are required to purchase one Australian dollar (base currency).

What factors determine the AUD/USD exchange rate?

There are two main factors that determine the AUD/USD exchange rate: The Reserve Bank of Australia and Federal Reserve control the supply of money in the market to keep the economy on track. A dovish policy, also known as expansionary policy, weakens the currency as the monetary supply increases.

Is AUD/USD a direct currency?

For example, AUD/USD exhibits a long-term positive correlation with the value of gold. Since the Australian dollar is a first currency (base currency), the pair is called a direct currency. AUD/USD is the fourth most actively traded currency pair, representing around 7% of total forex market turnover.