Advertisement
Advertisement

AUD/USD Forex Technical Analysis – August 30, 2016 Forecast

By:
James Hyerczyk
Published: Aug 30, 2016, 04:52 UTC

The AUD/USD is trading flat after posting a potentially bullish closing price reversal bottom on Monday. The Australian Dollar is being underpinned by

Australian Dollar

The AUD/USD is trading flat after posting a potentially bullish closing price reversal bottom on Monday. The Australian Dollar is being underpinned by increased demand for higher yield. The Forex pair is also being supported by the lack of dovish comments from the Reserve Bank of Australia despite the lofty price level of its currency.

Additionally, investors betting on a possible rate hike by the Fed in September seemed to have cooled there expectations. They may be stepping aside as they wait for more information from Friday’s U.S. Non-Farm payrolls report.

AUD/USD Technical Analysis
Daily AUD/USD

Technically, the main trend is down according to the daily swing chart. However, Monday’s closing price reversal bottom suggests that momentum may be getting ready to shift back to the upside. The chart pattern will be confirmed on a breakout above .7581.

The main range is .7420 to .7755. Its retracement zone is .7588 to .7548. The AUD/USD is currently trading inside this zone.

The short-term range is .7691 to .7524. Its retracement zone at .7608 to .7627 is the primary upside target. A downtrending angle passes through this zone at .7615, making it a valid upside target also.

In the downside, the nearest support is a price cluster at .7550 to .7548. If this fails then the next support is an uptrending angle at .7536, followed by the reversal bottom at .7524.

Watch the price action and read the order flow at .7581 today. Trader reaction to this price will tell us if the buying is getting stronger, or if the sellers are regaining control. Traders will get the opportunity to react to the latest Conference Board Consumer Confidence data, however, the main focus for traders will be on Friday’s U.S. jobs report.

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.

Did you find this article useful?

Advertisement