AUD/USD Forex Technical Analysis – Daily Chart Strengthens Over .7078, Weakens Under .7016
Based on last week’s price action and the close at .7039, the direction of the market on Monday is likely to be determined by trader reaction to last week’s low at .7016. Due to the prolonged move down in terms of price and time, the AUD/USD is inside the window of time for a potentially bullish closing price reversal bottom.
The Australian Dollar finished marginally higher on Friday after giving up most of its early session gains. The price action reflects concerns over U.S.-Chinese trade relations as the negotiations to end the trade dispute continued. Support was provided by another drop in U.S. Treasury yields which are now at a 10-month low. Gains were capped, however, by lower demand for higher-yielding currencies. Volume remained well below average as many of the major players remained on the sidelines during the Christmas and New Year holiday season.
On Friday, the AUD/USD settled at .7039, up 0.0009 or +0.12%.
AUD/USD Forex Technical Analysis
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. The downtrend was reaffirmed on Thursday when sellers took the Forex pair to .7016, taking out the October 20 bottom at .7020 in the process.
The main trend will change to up on a trade through .7247. A trade through .7016 will signal a resumption of the downtrend. Due to the prolonged move down in terms of price and time, the AUD/USD remains in a position to post a potentially bullish closing price reversal bottom.
The minor trend is also down. A trade through .7016 will signal a resumption of the minor downtrend. A trade through .7078 will change the minor trend to up. This will also shift momentum to the upside.
The short-term range is .7247 to .7016. Its retracement zone at .7132 to .7159. This is the nearest resistance.
The main range is .7394 to .7016. Its retracement zone at .7205 to .7250 is the next upside target.
Daily Swing Chart Technical Forecast
Based on last week’s price action and the close at .7039, the direction of the market on Monday is likely to be determined by trader reaction to last week’s low at .7016.
A sustained move over .7016 will indicate the presence of buyers. If this move can generate enough upside momentum, we could see a move into the minor top at .7078. Taking out this top will change the minor trend to up. This will also shift momentum to the upside. This could trigger an acceleration to the upside with the first target the short-term 50% level at .7132.
A sustained move under .7016 will signal that the selling pressure is getting stronger. This could generate the momentum needed to challenge the February 9, 2016 main bottom at .6973.
Closing Price Reversal Bottom
Due to the prolonged move down in terms of price and time, the AUD/USD is inside the window of time for a potentially bullish closing price reversal bottom. Taking out .7016 then closing higher for the session will form this reversal bottom. This chart pattern will not be a change in trend, but it could lead to the start of a 2 to 3 day counter-trend rally.
Hi! I'm Tamil.
Here at Forex Tamil, we are focused on teaching you high probability and low risk price action trade setups, so that you are able to create a consistent edge over the market that you can use to your advantage, time and time again. You Can Read More Here.
LEGAL : This website, presented by Forextamil.com, the lessons and articles it distributes and the blogs it publishes make no recommendations about what Commodity , Equity Future,Forex or Currency to buy or sell. All information is strictly educational and/or opinion. Forextamil.com does not provide financial, legal or trading advice and is not soliciting the buying or selling of Commodity ,Equity or Currency. The user acknowledges that Forextamil.com is in no way responsible for the investment and trading and/or legal decisions of its users. The user acknowledges and accepts that Forextamil.com assumes no responsibility for inaccurate, erroneous or unavailable data. The user is encouraged to conduct its own due diligence. Any tips or trade setups represented are simply Forextamil.com opinion and meant to pass on information about the Commodity, Equity,Forex or Currency markets and do not constitute financial or trading advice. By using the information, you acknowledge that Forextamil.com is not providing financial or trading advice and agree that Forextamil.com is in no way responsible for your trading and investment decisions, regardless of whether those decisions were inspired by using this site and/or its news letters or not.
Disclaimer : Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Forextamil.com, its employees, directors or fellow members.Commodities, Equity Futures, options, Forex and currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Equity futures , Commodity Forex and Currency markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell Equity futures, Commodities, Currency or options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
HIGH RISK WARNING : Commodities. Equity Futures, Forex,Currency and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in Commodities, Equity futures, Forex ,Currency and options and be willing to accept them in order to trade in these markets. Commodity, Equity Forex and Currency trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.