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AUD/USD Forex Technical Analysis – February 22, 2019 Forecast

By:
James Hyerczyk
Published: Feb 22, 2019, 06:41 UTC

Based on yesterday’s low and today’s early price action, the direction of the AUD/USD on Friday is likely to be determined by trader reaction to the main 50% level at .7079.

AUD/USD

The Australian Dollar is trading slightly higher on Friday after posting a steep sell-off the previous session. The currency is being supported today by upbeat comments from Reserve Bank Governor Philip Lowe and easing concerns about China’s ban on Australian coal imports.

The Aussie hit a 10-day low on Thursday on fears a ban on the country’s coal by a Chinese port would hurt Australia’s already slowing economy. Earlier in the session, the Australian Dollar found support after RBA Governor Lowe declared house prices will not “derail” the economy while conceding the drop may be hurting some households.

At 06:14 GMT, the AUD/USD is trading .7097, up 0.0008 or +0.12%.

AUDUSD
Daily AUD/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7053 will signal a resumption of the downtrend. The main trend will change to up on a move through .7296.

The minor trend is also down. A trade through .7053 will reaffirm the minor downtrend. The minor trend will change to up on a move through .7207. This will also shift momentum to the upside.

The main range is .7394 to .6764. Its retracement zone is .7079 to .7153. This zone is controlling the longer-term direction of the Forex pair. The AUD/USD is currently trading inside this range.

The short-term range is .6764 to .7296. Its retracement zone at .7030 to .6967 is the primary downside target.

Daily Technical Forecast

Based on yesterday’s low and today’s early price action, the direction of the AUD/USD on Friday is likely to be determined by trader reaction to the main 50% level at .7079.

Bullish Scenario

A sustained move over .7079 will indicate the presence of buyers. If this generates enough upside momentum then look for a rally into the uptrending Gann angle at .7124. Overtaking this angle could extend the rally into the main Fibonacci level at .7153.

Bearish Scenario

A sustained move under .7079 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with .7053 the next downside target. Taking out this bottom will reaffirm the downtrend with the next target the short-term 50% level at .7030. This is another potential trigger point for an acceleration into the short-term Fibonacci levels at .6967.

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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