AUD/USD Forex Technical Analysis – April 16, 2019 Forecast

The Australian Dollar is trading lower on Tuesday after the minutes from the Bank of Australia’s monetary policy minutes indicated policymakers were open to a possible cut in interest rates. Although the board members could not build a strong case for a move in the near-term, they did say a cut in interest rates would be “appropriate” should inflation remain low and unemployment trend higher.

At 09:33 GMT, the AUD/USD is trading .7145, down 0.0028 or -0.38%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7192 will signal a resumption of the uptrend. The main trend will change to down on a trade through .7052.

The minor trend is also up. A move through .7109 will change the minor trend to down. This will also shift momentum to the downside.

The main range is .7394 to .6764. The AUD/USD is currently trading inside its retracement zone at .7079 to .7153.

The minor range is .6764 to .7296. Its retracement zone at .7030 to .6967 is support.

Essentially, the market has been trading between .7153 and .6967 for about two months.

Daily Technical Forecast

Given the current downside momentum, the AUD/USD appears to be headed towards a long-term uptrending Gann angle at .7129. We could see a technical bounce on the first test of this angle. If it fails then look for the selling to extend into .7109.

Taking out .7109 will change the minor trend to down and shift momentum to the downside. This could lead to a test of the 50% level at .7079.

On the upside, the key resistance is the Fibonacci level at .7153 and a long-term downtrending Gann angle at .7159. Overtaking .7159 could trigger a strong short-covering rally.