AUD/USD Forex Technical Analysis – April 10, 2019 Forecast

The Australian Dollar continued its roller coaster ride on Wednesday, posting a small gain after yesterday’s volatile two-sided trade. Helping to pressure prices on Tuesday after early session strength was a negative report from the International Monetary Fund (IMF), calling for lower global growth. Today, the currency is finding support after a speech from a senior Reserve Bank of Australia official.

At 05:57 GMT, the AUD/USD is trading .7141, up 0.0014 or +0.19%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7168 will signal a resumption of the uptrend. The main trend will change to down on a move through .7052.

The minor trend is up. This is also driving the upside momentum. The uptrend was reaffirmed on Tuesday when buyers took out a pair of minor tops at .7131 and .7133. The minor trend will change to down on a move through .7087. This will also shift momentum to the downside.

The AUD/USD continues to trade inside a major retracement zone at .7079 to .7153, finding resistance at the upper level of the zone on Tuesday.

The next retracement zone is .7105 to .7129. This is followed by a short-term retracement zone at .7102 to .7091. The combination of these two retracement zones makes .7105 to .7102 the key support area.

Daily Technical Forecast

Early Wednesday, the AUD/USD found support on an uptrending Gann angle at .7112, just slightly above the key support cluster at .7105 to .7102. The upside momentum created by this move drove the Aussie through a Fibonacci level at .7129 and a downtrending Gann angle at .7133.

This triggered an acceleration to the upside. If the upside momentum continues then look for a drive into the downtrending Gann angle at .7151 and the main Fibonacci level at .7153. This level stopped the rally on Tuesday.

Taking out .7153 could trigger another acceleration to the upside with targets a main top at .7168 and a long-term downtrending Gann angle at .7169.

The inability to take out .7153 will be the first sign of weakness. A failure to hold .7133 and .7129 will indicate the selling pressure is getting stronger. This could trigger a retest of the uptrending Gann angle at .7112. If this fails then look for the selling to extend into .7105 to .7102.