AUD/USD Forex Technical Analysis – Buyers Could Return on Test of .7544 to .7513

The Australian Dollar finished lower on Friday, but still managed to hold on to its gains for the week. After surging to .7677 earlier in the week, its highest level since April 23, prices retreated the last two sessions on concerns over a possible trade war, disappointing trade balance data and worries over emerging markets.

The AUD/USD settled at .7568, up 0.0021 or +0.68%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7677 will signal a resumption of the uptrend. A move through .7476 will change the main trend to down.

The minor trend is also up. A trade through .7515 will change the minor trend to down. This will also shift momentum to the downside.

The main range is .7812 to .7412. Its retracement zone at .7612 to .7659 is resistance. This zone is also controlling the longer-term direction of the Forex pair.

The short-term range is .7412 to .7677. Its retracement zone at .7544 to .7513 is the primary downside target. Since the main trend is up, look for buyers to show up on a test of this zone. They are going to try to produce another higher bottom.

Daily Swing Chart Technical Forecast

Based on last week price action and the close, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the 50% level at .7612.

A sustained move under .7612 will indicate the presence of sellers. This could drive the Forex pair into .7544 to .7513.

A sustained move over .7612 will signal the presence of buyers. This could create the momentum needed to challenge .7659, followed by the main top at .7677.