AUD/USD Forex Technical Analysis – February 19, 2019 Forecast

The Australian Dollar was under pressure on Tuesday after the Reserve Bank of Australia signaled it was dovish on interest rates. Minutes of the RBA’s February monetary policy meeting showed the board saw “significant uncertainties” over the economic outlook, particularly on how falling home prices might affect consumer spending. The minutes also showed the RBA board was also worried about the global outlook, citing a slowdown in China and heightened trade tensions.

At 08:39 GMT, the AUD/USD is trading .7120, down 0.0012 or -0.17%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. The nearest main top is .7296. A trade through this level will change the main trend to up. A move through .7053 will signal a resumption of the downtrend.

The minor trend is up. This is why the momentum is trending higher. A trade through .7073 will change the minor trend to down. This will also shift momentum to the downside. A move through .7161 will signal a resumption of the minor trend.

The AUD/USD is currently trading inside a major retracement zone, bounded by .7079 to .7154. This zone is controlling the near-term direction of the Forex pair.

The main range is .7296 to .7053. Its retracement zone at .7175 to .7203 is the primary upside target.

Daily Technical Forecast

Based on the current price at .7120 and the intraday downside momentum, the AUD/USD appears to be headed towards a long-term uptrending Gann angle at .7092. We could see a technical bounce on the first test of this angle. If it fails then look for the selling to possibly extend into the major 50% level at .7079.

If the AUD/USD happens to rebound and turn higher for the session then the next potential targets are .7154, .7161 and .7166.

From a longer-term perspective, the key support is .7079. This price level has to hold as support or selling pressure will increase. This could lead to a major shift in investor sentiment to the downside.