AUD/USD Forex Technical Analysis – Breakout Over .7338 Targets .7363 and .7382

The Australian Dollar is trading higher early Thursday, but still below yesterday’s high and a recent main top. On Wednesday, the Aussie surged after remarks from Fed Chairman Jerome Powell created doubts about the pace of future rate hikes from the U.S. Federal Reserve in 2019, sending U.S. bond yields lower and weakening the U.S. Dollar.

At 0727 GMT, the AUD/USD is trading .7318, up 0.0012 or +0.18%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7338 will signal a resumption of the uptrend. The main trend will change to down on a trade through .7164. If buyers can take out .7338 then .7199 will become the swing bottom.

The market is currently straddling a key Fibonacci level at .7307. Support is a key 50% level at .7252.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the AUD/USD on Thursday is likely to be determined by trader reaction to the Fibonacci level at .7307.

Bullish Scenario

A sustained move over .7307 will indicate the presence of buyers. If this move can create enough upside momentum then look for buyers to take a run at the main top at .7338.

Taking out .7338 will reaffirm the uptrend. This could create the momentum needed to challenge a pair of tops at .7363 and .7382.

Bearish Scenario

A sustained move under .7307 will signal the presence of sellers. The daily chart is wide open under this level with the next major target a 50% level at .7252. The selling will extend further if this level is violated.