AUD/USD Forex Technical Analysis – August 6, 2018 Forecast

The Australian Dollar is trading slightly lower early Monday. Volume is low because of the bank holiday in Australia. Later today, investors will get the opportunity to react to the MI Inflation Gauge and the ANZ Job Advertisements report. Early Tuesday, the Reserve Bank of Australia will release its latest interest rate decision.

At 2330 GMT, the AUD/USD is trading .7395, down 0.0003 or -0.04%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A move through .7465 will signal a resumption of the uptrend. A trade through .7318 will change the main trend to down.

The minor trend is down. This trend indicator is controlling the momentum. A trade through .7442 will change the minor trend to up and shift momentum to the upside. A trade through .7348 will indicate the counter-trend selling is getting stronger.

The major 50% level at .7397 is controlling the longer-term direction of the AUD/USD.

The short-term range is .7318 to .7465. Its retracement zone is .7391 to .7373. This zone is support today.

Combining the two retracement zones makes .7397 to .7391 the key area to watch today.

Daily Technical Analysis

Based on the early price action, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the 50% levels at .7397 and .7391.

A sustained move over .7397 will indicate the presence of buyers. If this generates enough upside momentum we could see a test of a pair of Gann angles at .7425 and .7429. Overtaking .7429 will put the AUD/USD in a strong position with potential targets at .7442 and .7445.

A sustained move under .7391 will signal the presence of sellers. Crossing to the weak side of the downtrending Gann angle at .7385 will indicate the selling is getting stronger with the next target a support cluster at .7373. Look for a technical bounce on the first test of this area.

Look for an acceleration to the downside if .7473 fails with .7348 and .7346 the next likely targets.