AUD/USD Forex Technical Analysis – June 24, 2016 Forecast

The AUD/USD is trading sharply lower as investors dumped higher risk currencies for the safety of the U.S. Dollar. The market has stabilized since the initial reaction, but volatility is likely to pick up once the U.S. cash stock market opens. If investors continue to sell stocks then look for the Aussie to weaken further. If stocks mount a comeback rally then the Australian Dollar is likely to firm.

The main trend is up according to the weekly swing chart. The main trend will turn down when the swing bottom at .7145 is taken out.

The main range is .6826 to .7834. Its retracement zone at .7330 to .7211 is the primary downside target. This zone provided support earlier in the session when the market tested .7301. This retracement zone is controlling the longer-term direction of the market.

The short-term range is .7834 to .7145. Its retracement zone at .7490 to .7571 is the primary upside target. This zone provided resistance earlier in the session.

Based on the current price at .7402, the nearest resistance is a downtrending angle at .7474. This is followed by .7490. This price is the trigger point for a surge into .7571, .7582 and .7654.

The nearest downside target is the main 50% level at .7330. This is followed by an uptrending angle at .7305 and .7286.

The daily chart opens up to the downside under .7286 with the next targets .7225 and .7211. This is followed by the main bottom at .7145. Taking out this level will change the main trend to down and likely fuel a break into the next major uptrending angle at .7056.

Look for an upside bias on a sustained move over .7474. The inability to overcome this angle will continue to give the AUD/USD a downside bias.