AUD/USD Forex Technical Analysis – January 23, 2018 Forecast

President Trump’s announcement on Monday of new tariffs has rattled Australian Dollar traders, triggering a sharp sell-off in the currency pair. The price action has also helped form a new main top. Additional selling pressure is being generated by a report from Westpac which called the Aussie Dollar “expensive”.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through .8038 will signal a resumption of the uptrend. This could fuel an extension of the rally into the September 20 main top at .8102.

The short-term range is .7807 to .8038. Its retracement zone at .7914 to .7889 is the primary downside target. An uptrending Gann angle passes through this zone at .7907, making it a valid downside target also.

Daily Technical Forecast

Based on the early price action, the direction of the AUD/USD is likely to be determined by trader reaction to the downtrending Gann angle at .7998.

A sustained move under .7998 will indicate the presence of sellers. The daily chart indicates there is plenty of room to the downside with the next targets coming in at .7914, .7907 and .7889.

Overtaking .7998 will signal the return of buyers. This could trigger a labored rally with targets at .8018 and .8028. The latter is the last potential resistance angle before the .8038 main top.