AUD/USD Forex Technical Analysis – Big Decision for Traders Following Test of .7710 to .7689

The Australian Dollar is trading lower on Friday after giving back all of its earlier gains. The currency reached a high of .7800 against the U.S. Dollar overnight, but did a quick about face when 10-year U.S. Treasury yields jumped higher. Rising yields made the U.S. Dollar a more attractive asset.

At 11:37 GMT, the AUD/USD is trading .7748, down 0.0037 or -0.48%.

The 10-year U.S. Treasury yield hit 1.6% once again on Friday morning, after President Joe Biden signed his stimulus package into law and announced he would direct states to make all adults eligible for the coronavirus vaccine by May 1.

The yield on the benchmark 10-year Treasury note advanced to 1.6% at 09:30 GMT. The yield on the 30-year Treasury bond rose to 2.348%, Reuters reported.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, but momentum has been trending higher since March 9.

A trade through .7621 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend changes to up on a move through .8007.

The main range is .7564 to .8007. The AUD/USD is currently testing its retracement zone at .7786 to .7733. This zone is controlling the near-term direction of the Forex pair.

The short-term range is .8007 to .7621. Its retracement zone at .7814 to .7860 is potential resistance.

The minor range is .7621 to .7800. Its retracement zone at .7710 to .7689 is the next downside target.

Daily Swing Chart Technical Forecast

After the early session break, the direction of the AUD/USD into the close is likely to be determined by trader reaction to .7733.

Bearish Scenario

A sustained move under .7733 will indicate the presence of sellers. This could trigger a break into .7710 to .7689.

Watch for aggressive counter-trend buyers on the first test of this area. They are going to try to form a potentially bullish secondary higher bottom. Taking out .7689, however, could trigger an acceleration to the downside.

Bullish Scenario

A sustained move over .7733 will signal the presence of buyers. If this creates enough upside momentum then look for a possible retest of .7786, followed by .7800 and .7814.

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