AUD/USD Forex Technical Analysis – Holding .7396 Could Create Momentum Needed to Challenge .7484

The Australian Dollar is moving higher on Tuesday after posting a volatile, two-sided move the previous session. The Aussie continues to be supported by an improving outlook for the economy as it recovers following its relative success in combating COVID-19. A weaker U.S. Dollar is also providing support as its policymakers move closer to approving another coronavirus-relief package.

At 09:09 GMT, the AUD/USD is trading .7433, up 0.0013 or +0.18%.

In economic news, a measure of business confidence and conditions showed a surge in November to “above average” as the second-largest state of Victoria emerged from its lengthy virus-induced lockdown and other states opened their borders to each other.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7454 will reaffirm the uptrend. The main trend will change to down on a move through .7339.

The minor trend is also up. A trade through .7372 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is .7339 to .7454. Its 50% level at .7396 is support.

The second minor range is .7255 to .7454. Its 50% level at .7354 is also support.

The third minor support level comes in at .7338.

Daily Swing Chart Technical Forecast

The direction of the AUD/USD on Tuesday is likely to be determined by trader reaction to .7396.

Bullish Scenario

A sustained move over .7396 will indicate the presence of buyers. The first target is .7454. Taking out this level could trigger a surge into the July 9, 2018 main top at .7484.

Bearish Scenario

A sustained move under .7396 will signal the presence of sellers. This could trigger an acceleration into a potential support cluster at .7372, .7354, .7339 and .7338.