AUD/USD Forex Technical Analysis – Headed Toward 13-Month Low at .7329

The Australian Dollar is under pressure on Tuesday as worries over a potential trade war between the United States and China continue to weigh one of Beijing’s largest trading partners. Aussie traders are also feeling pressure from expectations of rising U.S. interest rates and a steep decline in the New Zealand Dollar.

At 1753 GMT, the AUD/USD is trading .7388, down 0.0026 or -0.34%.

Investors are also dumping the Aussie Dollar in reaction to bearish reports from Rabobank and Morgan Stanley.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7345 will signal a resumption of the downtrend.

The minor trend is also down. A move through .7445 will change the minor trend to up.

Daily Swing Chart Technical Forecast

Based on the price action late Tuesday, the strong downside momentum is likely to continue into the close.

The next major downside target is the last minor bottom at .7345. Taking out this level will mean the selling is getting stronger. This could lead to a test of the May 9 bottom at .7329.

I wouldn’t worry about the upside unless the market reverses today and the move generates enough upside momentum to take out the minor top at .7445.