AUD/USD Forex Technical Analysis – Inching Higher on Strong Side of .7598 Minor Pivot

The Australian Dollar is edging higher early Monday in limited trading. The price action in Asia is being dampened by bank holidays in Australia, New Zealand, China and Hong Kong. Volume could also be lighter during the European session with banks closed in Switzerland, France, Germany, Italy and the United Kingdom.

At 03:09 GMT, the AUD/USD is trading .7619, up 0.0006 or +0.07%.

Although the Aussie Dollar is trading higher, traders expect the move to be limited with the U.S. Dollar poised to extend gains on Monday following a report on Friday that showed the nation’s labor market is recovering from the impact of the coronavirus pandemic.

Later today at 14:00 GMT, traders will get the opportunity to react to the latest data on U.S. services. The ISM Services PMI is expected to come in at 58.3, up from 55.3. Factory Orders are expected to fall 0.5%, down from 2.6%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The main trend will change to up on a trade through .7664. A move through .7532 will signal a resumption of the downtrend.

The minor range is .7664 to .7532. Its 50% level at .7598 is providing early support.

Another minor range comes in at .7849 to .7532. Its retracement zone at .7691 to .7728 is the first upside target.

The short-term range is .8007 to .7532. Its retracement zone at .7770 to .7826 is another potential resistance zone.

Daily Swing Chart Technical Forecast

The direction of the AUD/USD is likely to be determined by trader reaction to the pivot at .7598.

Bullish Scenario

A sustained move over .7598 will indicate the presence of buyers. If this move creates enough upside momentum then look for a possible surge into the main top at .7664, followed by the retracement zone at .7691 to .7728.

Bearish Scenario

A sustained move under .7598 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into .7532.