AUD/USD Forex Technical Analysis – February 5, 2019 ForecastBased on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at .7224.
The Australian Dollar is trading higher on Tuesday after reversing earlier losses. The rally is being fueled by comments by the Reserve Bank of Australia (RBA) in its monetary policy statement. RBA policymakers left their benchmark interest rate unchanged at the historically low 1.5 percent, but sounded less-dovish in its policy statement.
At 08:45 GMT, the AUD/USD is trading .7244, up 0.0019 or +0.28%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through .7296 will signal a resumption of the uptrend. A trade through this level will also make .7194 a new main bottom.
The minor trend is also up. A trade through .7194 will change the minor trend to down. This will also shift momentum to the downside.
The short-term range is .7076 to .7296. Its 50% level or pivot at .7186 is new support.
The main range is .7394 to .6764. Its retracement zone at .7153 to .7079 is the major support area. Holding above this zone will maintain the upside bias.
Daily Technical Forecast
Based on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at .7224.
A sustained move over .7224 will indicate the presence of buyers. If this move generates enough upside momentum then look for a rally into the downtrending Gann angle at .7284. This angle stopped the rally at .7296 on January 31.
Taking out the angle at .7284 will indicate the buying is getting stronger. A drive through .7296 could trigger an acceleration to the upside with the next downtrending target angle coming in at .7339. This is the last potential resistance angle before the .7394 main top.
A sustained move under .7224 will signal the presence of sellers. This could lead to a retest of today’s intraday low at .7194, followed by the short-term 50% level at .7186. If this level fails then look for a test of the major Fibonacci level at .7153.
Traders are adjusting positions today because they had priced in dovish comments from the RBA. Over the past few days, speculators had increased bets on a potential rate hike by the central bank.
Please let us know what you think in the comments below.