AUD/USD Forex Technical Analysis – Could Regain Strength Over .7159, Weakens Under .7145

The Australian Dollar is trading lower early Friday amid fears of additional tariffs from the U.S. on its largest trading partner China. Traders are also paring positions ahead of Friday’s U.S. Non-Farm Payrolls report, due to be released at 1230 GMT.

At 0337 GMT, the AUD/USD is trading .7158, down 0.0039 or -0.56%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7145 will signal a resumption of the downtrend.

The minor trend is also down. A trade through .7235 will change the minor trend to up. This will also shift momentum to the upside.

On September 5, the AUD/USD formed a closing price reversal bottom at .7145. However, it hasn’t been confirmed. A trade through .7218 will confirm the chart pattern.

The main range is .7363 to .7145. Its retracement zone at .7254 to .7280 is the primary upside target. Since the main trend is down, sellers are likely to come in on a test of this area.

Daily Swing Chart Technical Forecast

Early Friday, the AUD/USD is testing a previous bottom at .7159. If it fails then the Forex pair is likely to continue into the May 24, 2016 bottom and this week’s low at .7145.

A trade through .7145 could create the downside momentum needed to challenge the February 29, 2016 main bottom at .7107.

Aggressive counter-trend buyers may be trying to build a support base between .7159 and .7145. If this move is able to generate enough upside momentum then buyers may make a run at .7218, followed by the minor top at .7235. The latter is a potential trigger point for an acceleration into .7254 to .7280.