AUD/USD Forex Technical Analysis – .7082 First Support, .7206 Next Potential Upside Target

The Australian Dollar is trading sharply higher shortly ahead of the close on Tuesday, boosted by a surge in demand for higher-yielding currencies after European Union countries struck an agreement on a massive stimulus plan to revive their coronavirus-battered economies. An upturn in sentiment following the EU deal lifted the Aussie to a 15-month high.

At 20:46 GMT, the AUD/USD is trading .7124, up 0.0107 or -1.52%.

The Australian Dollar was also lifted after the central bank offered few surprises in minutes from last month’s minutes. Additionally, in a speech, Governor Philip Lowe said while he would prefer a cheaper Aussie Dollar, its 27% recovery from March lows was supported by fundamentals.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed early Tuesday when buyers drove the AUD/USD through the June 10 top at .7065 and more importantly, the July 19, 2019 main top at .7082. The main trend will change to down if sellers take out the series of main bottoms at .6833, .6811 and .6777.

The minor trend is also up. A trade through .6963 will change the minor trend to down. This will also shift momentum to the downside. A second minor bottom comes in at .6921. Taking out this level will not only confirm the shift in momentum, but it could trigger an acceleration to the downside.

Short-Term Outlook

The first support is the old top at .7082, followed by the short-term top at .7065. A failure to hold these levels will suggest that Tuesday’s rally was fueled by short-covering and buy stops rather than aggressive buying.

On the flipside, a sustained move over Tuesday’s intraday high at .7147 will indicate the buying is getting stronger. If this is able to generate enough upside momentum then look for the rally to possibly extend into the April 17, 2019 main top at .7206 over the near-term.

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