Advertisement
Advertisement

AUD/USD Forex Technical Analysis – August 26, 2019 Forecast

By:
James Hyerczyk
Published: Aug 26, 2019, 08:58 UTC

Based on the early price action and the current price at .6761, the direction of the AUD/USD the rest of the session on Monday is likely to be determined by trader reaction to the pivot at .6749.

AUD/USD

The Australian Dollar is posting a strong intraday reversal on Monday in reaction to positive comments from President Trump regarding U.S.-China trade relations. The news is helping to drive up demand for commodity currencies like the Aussie and Kiwi, and higher risk assets like stocks. Safe-haven assets like Treasurys, gold and the Japanese Yen are reversing hard from their tops.

At 08:40 GMT, the AUD/USD is trading .6761, up 0.0005 or +0.07%.

President Trump said on Monday that China is ready to come back to the negotiating table and the two countries will start talking very seriously. Speaking at the G-7 summit in Biarritz in France, Trump praised Chinese President Xi Jinping and welcomed his desire for a deal and for calm.

AUDUSD
Daily AUD/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, the current price action suggests a closing price reversal bottom may be forming at .6690 after a successful defense of the main bottom at .6677.

A trade through .6677 will signal a resumption of the downtrend. This could put the Aussie in an extremely bearish position since the next target is the March 3, 2009 main bottom at .6285.

The main trend will change to up on a trade through .7082. This is not likely today, but there are several minor top targets. These include .6799, .6818 and .6821. Counter-trend buyers could try to blow stops above these levels.

The minor trend is also down. A trade through .6821 will change the minor trend to up. This will also shift momentum to the upside.

The minor range is .6677 to .6821. Its 50% level or pivot at .6749 has been controlling the direction of the AUD/USD for most of the month.

The main range is .7082 to .6677. Its retracement zone at .6880 to .6927 is the primary upside target.

Daily Technical Forecast

Based on the early price action and the current price at .6761, the direction of the AUD/USD the rest of the session on Monday is likely to be determined by trader reaction to the pivot at .6749.

Bullish Scenario

A sustained move over .6749 will indicate the presence of buyers. Turning positive for the session on a trade through .6756 will indicate the buying is getting stronger. This could trigger a move into the minor high at .6799. This is followed by a downtrending Gann angle at .6822.

The minor top at .6821 and the angle at .6822 form a potential resistance cluster. This area is a potential trigger point for an acceleration into the main 50% level at .6880.

Bearish Scenario

A sustained move under .6749 will signal the presence of sellers. This could open up the AUD/USD for a retest of .6690 and .6677. Look out to the downside if .6677 fails as support.

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.

Did you find this article useful?

Advertisement