AUD/USD Forex Technical Analysis – February 7, 2019 Forecast

Based on the early price action and the lack of follow-through to the downside, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the main bottom at .7076.
James Hyerczyk
AUD/USD

The Australian Dollar is trading slightly lower on Thursday after a steep sell-off the previous session. Wednesday’s break was fueled by dovish remarks from Reserve Bank of Australia Governor Philip Lowe that suggested the central bank may be preparing for an interest rate cut later this year. Some of today’s early pressure was provided by weaker-than-expected New Zealand employment data.

At 09:06 GMT, the AUD/USD is trading .7100, down 0.0007 or -0.10%.

The tight trading range and the slight recovery on Thursday suggests that yesterday’s sell-off may have been an over-reaction to Dr. Lowe’s comments so we could see some price adjusting. Nonetheless, sentiment has turned bearish so it’s just a matter of time before prices retreat into the high-to-mid .60’s.

Daily AUD/USD

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through .7076 will change the main trend to down. The uptrend will resume on a trade through .7296.

The minor trend is down. This move shifted momentum to the downside.

The AUD/USD is currently testing a key retracement zone at .7153 to .7079. This zone is controlling the near-term direction of the Forex pair.

Daily Technical Forecast

Based on the early price action and the lack of follow-through to the downside, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the main bottom at .7076.

Bullish Scenario

Holding above the 50% level at .7079 and the main bottom at .7076 will indicate the return of buyers. They will be attempting to defend the uptrend. If successful, this could create enough upside momentum to challenge the main Fibonacci level at .7153, followed by a downtrending Gann angle at .7196.

Bearish Scenario

Taking out .7076 will change the main trend to down. This could trigger an acceleration into the uptrending Gann angle at .7014.

Sentiment has shifted so we expect to see a change in trend to down over the near-term, however, since the sell-off was so fast this week, we may see a retracement to the upside which would give bearish traders the opportunity to short at better price levels.

Please let us know what you think in the comments below. 

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US