AUD/USD Forex Technical Analysis – Intraday Weakness Under .7530, Intraday Strength Over .7547

The Australian Dollar is trading lower on Tuesday after cautious investors cut down on risk amid concerns over rising COVID-19 cases and as the greenback strengthened on growing bets of higher U.S. interest rates.

At 08:54 GMT, the AUD/USD is at .7530, down 0.0035 or -0.46%.

The Aussie fell overnight after Boston Federal Reserve President Eric Rosengren told the Financial Times the United States cannot afford a “boom and bust” cycle in the housing market that would threaten financial stability.

In other news, new COVID-19 outbreaks in Australia and South East Asia have hurt risk appetite, providing another headwind for the antipodean currencies. Worries that the Delta strain of the coronavirus could touch off major outbreaks have forced lockdowns in three major Australian cities and some form of curbs in several others – affecting about 80% of the country’s population.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7477 will signal a resumption of the downtrend. A move through .7617 will change the main trend to up.

The main range is .7776 to .7477. Its retracement zone at .7627 to .7662 is resistance.

The short-term range is .7477 to .7617. The AUD/USD is currently testing its retracement zone at .7547 to .7530.

The long-term support is the retracement zone at .7499 to .7379. This zone stopped the selling on June 21 at .7477.

Daily Swing Chart Technical Forecast

The direction of the AUD/USD on Tuesday is likely to be determined by trader reaction to .7530.

Bearish Scenario

A sustained move under .7530 will indicate the presence of sellers. This could trigger a break into the long-term 50% level at .7499, followed by main bottoms at .7477 and .7462. The latter is a potential trigger point for an acceleration to the downside with .7379 – .7372 the near-term target.

Bullish Scenario

A sustained move over .7531 will signal the presence of buyers. Overtaking .7547 will indicate the buying is getting stronger. If this move can create enough upside momentum then look for the rally to possibly extend into .7617. Taking out this level will change the main trend to up, but don’t expect an acceleration to the upside unless buyers can overcome the short-term retracement zone at .7627 to .7662.