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AUD/USD Forex Technical Analysis – Counter-Trend Buyers Trying to Defend .6097

By:
James Hyerczyk
Updated: Apr 1, 2020, 05:26 UTC

The near-term direction of the AUD/US will be determined by trader reaction to the 50% level at .6097 and the Fibonacci level at .6236.

AUD/USD Forex Technical Analysis – Counter-Trend Buyers Trying to Defend .6097

The Australian Dollar is edging lower on Wednesday after a weak finish the previous session. Traders said demand for U.S. Dollars and worries about the economic impact of the coronavirus pandemic are once again pressuring demand for the higher risk commodity currency.

On Tuesday, the Aussie Dollar rallied in reaction to better than expected Chinese PMI data, but sellers came in to stop the move and drive prices lower into the close as demand for U.S. equities began to weaken.

At 05:06 GMT, the AUD/USD is trading .6127, down 0.0016 or -0.25%.

Earlier today the Reserve Bank of Australia (RBA) emergency meeting minutes from March 18 suggested that policymakers have no appetite for negative interest rates. Additionally, Australian Building Approvals rose 19.9%, coming in well above the 3.1% increase estimate. Last month, the report showed a 15.1% decline.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. The main trend changes to up on a move through .6685. A trade through .5510 will signal a resumption of the downtrend.

The minor trend is up. This is supporting the momentum. A trade through .5870 will change the minor trend to down. This will shift momentum to the downside.

The main range is .6685 to .5510. Its retracement zone at .6097 to .6236 is acting like resistance.

The short-term range is .5510 to .6213. Its retracement zone at .5861 to .5778 is the next potential downside target.

Daily AUD/USD

Short-Term Outlook

The near-term direction of the AUD/US will be determined by trader reaction to the 50% level at .6097 and the Fibonacci level at .6236.

A sustained move over .6236 will indicate the buying is getting stronger. If this occurs then .6097 to .6236 will become support.

A sustained move under .6097 will indicate the selling is getting stronger. This could trigger an eventual break into our downside target at .5861 to .5778.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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