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AUD/USD Forex Technical Analysis – November 27, 2015 Forecast

By:
James Hyerczyk
Published: Nov 27, 2015, 05:34 UTC

The AUD/USD finished lower on Thursday after confirming the previous day’s closing price reversal top. Selling was limited because of the low volume due

Daily AUD/USD

The AUD/USD finished lower on Thursday after confirming the previous day’s closing price reversal top. Selling was limited because of the low volume due to the U.S. bank holiday. We may see similar price action today.

The main trend is up according to the daily swing chart, however, momentum appears to have shifted to the downside with the formation of the closing price reversal top. This may not lead to a change in trend, but it could trigger a 2 to 3 day break into a short-term retracement zone.

Daily AUD/USD
Daily AUD/USD

Based on the close at .7225, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at .7211.

A sustained move over .7211 will signal the presence of buyers. This may create enough upside momentum to test the uptrending angle at .7275. Overcoming this angle will put the AUD/USD in a strong position.

Taking out .7282 will negate the closing price reversal top with the next target a downtrending angle at .7296.

A sustained move under .7211 will indicate the presence of sellers. This could trigger an acceleration to the downside with the first target a short-term 50% level at .7175. This is followed by the 61.8% level at .7150 and an uptrending angle at .7145. Buyers are likely to come in to defend the trend on a test of the retracement zone since the trend is up. This action will also complete the objective of the closing price reversal top.

Watch the price action and read the order flow at .7211 today. Trader reaction to this angle will tell us whether the bulls or the bears are in control. 

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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