AUD/USD Forex Technical Analysis – January 15, 2019 ForecastBased on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the minor top at .7236 and the downtrending Gann angle at .7239.
The Australian Dollar is trading slightly higher on Tuesday after recovering all of yesterday’s losses. Speculation that China may provide additional stimulus to the country’s economy is helping to generate the early upside momentum. Buyers are responding to upbeat comments from Chinese officials. Furthermore, the hope that the U.S. and China will soon end the trade dispute is also underpinning prices. Today’s early events have more than offset yesterday’s negative report on the Chinese trade balance.
At 1009 GMT, the AUD/USD is trading .7202, up 0.0007 or +0.11%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through .7247 will change the main trend to up.
The minor trend is up. This is generating the upside momentum. A trade through .7236 will signal a resumption of the uptrend. A move through .7175 will change the minor trend to down. This will shift momentum to the downside.
The main range is .7394 to .6764. Its retracement zone at .7153 to .7079 is key support. Holding above this zone is also helping to give the Forex pair an upside bias.
Daily Technical Forecast
Based on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the minor top at .7236 and the downtrending Gann angle at .7239.
Taking out .7236 will change the main trend to up. This should lead to a quick test of the Gann angle at .7239. This is the potential trigger point for an acceleration to the upside with the next target angle dropping in at .7317.
A sustained move under .7236 will signal the presence of sellers. If this move can create enough downside momentum then look for a test of the minor bottom at .7175. Taking out this level will shift momentum to the downside with the next target the Fibonacci level at .7153.
Look for a technical bounce on the first test of .7153 as buyers come in to defend the uptrend. However, if this level fails as support then look for a potential acceleration to the downside with the next target a potential support cluster at .7084 to .7079.