AUD/USD Forex Technical Analysis – January 17 2019 Forecast

The Australian Dollar is under pressure again on Thursday as hopes of timely stimulus from China and a US-China trade deal continue to fade. Traders are also responding to the steep fall in the Westpac Consumer Sentiment Index which was released earlier in the week. Traders also feel the Reserve Bank of Australia may continue to delay any plans for an interest rate hike.

At 0700 GMT, the AUD/USD is trading .7153, down 0.0015 or -0.19%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The new main top is .7236. A trade through this level will change the main trend to up. This is followed closely by another main top at .7247.

The minor trend is also down. A trade through .7226 will change the minor trend to up. This will also shift momentum to the upside.

The main range is .7394 to .6764. Its retracement zone at .7153 to .7079 is controlling the near-term direction of the market.

Daily Swing Chart Technical Forecast

Based on the current price at .7153, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the Fibonacci level at .7153.

Bullish Scenario

A sustained move over .7153 will indicate the presence of buyers. If this move can create enough upside momentum then we could see a retest of the minor top at .7226 and the main top at .7236.

Bearish Scenario

A sustained move under .7153 will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside with the next major target the 50% level at .7079. So prepare for a potential acceleration to the downside.