AUD/USD Forex Technical Analysis – Buyers Facing Big Challenge at .7340 – .7345

The Australian Dollar is trading higher on Wednesday after reversing earlier loses. The currency is currently bumping up against a main top at .7340, which is just slightly below the September 16 main top at .7345.

Helping to drive the Aussie higher is optimism over a coronavirus vaccine, and a weaker U.S. Dollar, which is being pressured following the release of weaker-than-expected retail sales data the previous session.

Shortly after the opening, the Aussie was pressured by a drop in Australian Government bond yields after the announcement of a six-day lockdown to combat a new COVID-19 cluster in South Australia.

At 09:53 GMT, the AUD/USD is trading .7323, up 0.0021 or +0.29%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7340 will signal a resumption of the uptrend. The main trend will change to down on a move through .7222.

The main range is .7414 to .6991. The AUD/USD is currently trading on the strong side of its retracement zone at .7252 to .7202, putting the Forex pair in a bullish position.

The short-term range is .6991 to .7340. If the main trend changes to down then look for the selling to possibly extend into its retracement zone at .7165 to .7124.

Daily Swing Chart Technical Forecast

The next major more in the AUD/USD will likely be determined by trader reaction to .7340. Essentially, it will be determined by whether there is enough upside momentum to take out the main tops at .7340 and .7345. Overtaking the latter could trigger an acceleration into the September 1 main top at .7414.

If sellers continue to defend .7340 enough to trigger a break then look for the selling to possibly extend into .7252. Taking out this level will mean the buyers have disappeared. This could trigger further break into the main bottom at .7222.

A failure at .7222 will change the main trend to down with .7202 the next likely target.

For a look at all of today’s economic events, check out our economic calendar.