FXEMPIRE
All
Ad
Advertisement
Advertisement
James Hyerczyk
Add to Bookmarks
AUD/USD

The Australian Dollar is trading higher late in the session on Wednesday, putting it in a position to post a dramatic closing price reversal bottom. The move does not change the trend to up, but it does shake out some of the weaker shorts who were looking for a bigger payday following this week’s steep sell-off.

At 18:40 GMT, the AUD/USD is trading .7356, up 0.0026 or +0.36%. This is up from an intraday low of .7286.

Advertisement
Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

The Aussie, seen as a liquid proxy for risk appetite, fell to its lowest level since November 2020 before the selling pressure dried up, and short-covering and speculative buying triggered a rebound rally strong enough to turn the AUD/USD higher for the session.

Daily AUD/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7290 will signal a resumption of the downtrend. A move through .7503 will change the main trend to up.

The first upside target is the long-term Fibonacci level at .7379.

The short-term range is .7503 to .7290. Its retracement zone at .7397 to .7422 is the next upside target area. Since the main trend is down, sellers are likely to come in on a test of these areas.

Advertisement

Daily Swing Chart Technical Forecast

The direction of the AUD/USD into the close on Wednesday will be determined by trader reaction to .7330.

Bullish Scenario

A sustained move over .7330 will indicate the presence of buyers. If this move is able to create enough upside momentum then look for a surge over the intraday high at .7360. This is followed by a long-term Fib level at .7379, a short-term 50% level at .7397 and a short-term Fib level at .7422.

Bearish Scenario

A sustained move under .7330 will signal the presence of sellers. The first downside target is .7325, followed by the intraday low at .7290. If this level fails as support then look for the selling to possibly extend into the November 19, 2020 bottom at .7255.

For a look at all of today’s economic events, check out our economic calendar.
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker