AUD/USD Forex Technical Analysis – January 23, 2019 Forecast

The Australian Dollar is trading higher, but inside yesterday’s range. The chart pattern suggests investor indecision and impending volatility. Underpinning the currency is short-covering and position-squaring ahead of tomorrow’s Australian Employment Change and Unemployment Rate reports. Helping to cap gains are concerns over U.S.-China relations after the Financial Times reported that a key higher level trade meeting later this month had been canceled. This news hasn’t been confirmed by the U.S., however.

At 1234 GMT, the AUD/USD is trading .7136, up 0.0016 or +0.23%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7236 will change the main trend to up. A move through yesterday’s low at .7115 will indicate the selling is getting stronger.

The minor trend is also down. A trade through .7222 will change the minor trend to up. This will shift momentum to the upside.

The main range is .7394 to .6764. The AUD/USD is currently testing its retracement zone at .7079 to .7153. This zone is controlling the near-term direction of the Forex pair.

The short-term range is .6764 to .7236. If the selling pressure intensifies then its retracement zone at .7000 to .6944 will become the primary downside target.

Daily Technical Forecast

Based on the early trade and the current price at .7136, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at .7153 and the main Fibonacci level at .7156.

Bullish Scenario

Overtaking and sustaining a rally over .7156 will indicate the presence of buyers. This could trigger a rally into a pair of downtrending Gann angles at .7196 and .7209. Look for sellers on the first test of this angles.

Bearish Scenario

A sustained move under .7153 will signal the presence of sellers. Taking out .7115 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with the next target the main 50% level at .7079.