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AUD/USD Forex Technical Analysis – April 28, 2016 Forecast

By:
James Hyerczyk
Updated: Apr 28, 2016, 12:22 UTC

The AUD/USD is trading higher and posting an inside move which suggests the heavy selling may be over following a dramatic reaction to weaker than

AUD/USD Forex Technical Analysis – April 28, 2016 Forecast

The AUD/USD is trading higher and posting an inside move which suggests the heavy selling may be over following a dramatic reaction to weaker than expected consumer inflation data on Wednesday. The bearish news now raises questions about whether the Reserve Bank of Australia will have to cut interest rates in order to stimulate the economy.

Daily AUD/USD

The main trend is up according to the daily swing chart, but momentum is clearly to the downside. The trend will turn down when .7491 is violated.

The main range is .6826 to .7834. Its retracement zone at .7330 to .7211 is the primary downside target.

Based on yesterday’s close at .7590 and the early price action, the direction of the market today is likely to be determined by trader reaction to an uptrending angle at .7566 and a downtrending angle at .7634.

Holding .7566 will indicate the presence of buyers, but don’t expect an upside breakout unless .7634 is taken out with conviction.

The daily chart indicates there is plenty of room to the upside on a sustained move over .7634 with the next major target a downtrending angle at .7734.

A sustained move under .7566 will indicate the presence of sellers. This could lead to a quick test of a pair of angles at .7543 and .7537.

Taking out .7537 will indicate the selling is getting stronger. This could trigger a move into swing bottoms at .7491 and .7477. We could see the start of a huge sell-off if .7477 fails since the next major target doesn’t come in until .7330.

Look for a bullish tone to develop over .7634 and the bearish tone to continue under .7566.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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