AUD/USD Forex Technical Analysis – Close Over .7580 Forms Potentially Bullish Closing Price Reversal Bottom

The Australian Dollar is trading slightly higher late in the session on Thursday after hitting its lowest level since December 28. The currency is also hovering slightly above the former main bottom at .7564, suggesting the earlier trade to .7563 was have been an attempt to chase away some weak stops. The move could be backfiring with the Aussie now in a position to post a potentially bullish closing price reversal bottom.

At 17:06 GMT, the AUD/USD is trading .7586, up 0.0006 or +0.06%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed when sellers took out the February 2 main bottom at .7564.

A trade through .7849 will change the main trend to up. This is highly unlikely, but we could see a closing price reversal bottom. This won’t change the main trend to up, but it could trigger a counter trend rally.

The minor range is .7849 to .7563. Its 50% level at .7706 is the first near-term target.

Daily Swing Chart Technical Forecast

The direction of the AUD/USD into the close is likely to be determined by trader reaction to .7580.

Bullish Scenario

A sustained move over .7580 will indicate the presence of buyers. This could trigger a short-covering rally into the close.

Bearish Scenario

A sustained move under .7580 will signal the presence of sellers. Taking out the intraday low at .7563 will indicate the selling is getting stronger. If this move can create enough downside momentum then look for the move to possibly extend into the December 21 main bottom at .7462.