AUD/USD Forex Technical Analysis – January 28, 2019 Forecast

The Australian Dollar is drifting higher early Monday. With Australia on bank holiday, most of the heavy lifting is being provided by a weaker U.S. Dollar. The greenback is being pressured ahead of Wednesday’s U.S. Federal Open Market Committee meeting on January 29-30. The FOMC is widely expected to leave rates unchanged.

At 0352 GMT, the AUD/USD is trading .7200, up 0.0022 or +0.30%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through .7236 will change the main trend to up. A move through .7076 will signal a resumption of the downtrend.

The main range is .7394 to .6764. Its retracement zone is .7153 to .7079. Trading on the strong side of this zone is helping to support the developing upside bias. Traders should consider the retracement zone support.

The short-term range is .6764 to .7236. If .7076 fails as support then look for a test of its retracement zone at .7000 to .6944.

Daily Technical Forecast

Based on the current price at .7200, 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 .7204.

Bullish Scenario

Taking out and sustaining a rally over .7204 will indicate the presence of buyers. This could trigger a surge into .7236, followed by another main top at .7247. This price is a potential trigger point for an acceleration to the upside with the next target angle coming in at .7299. This is the last potential resistance angle before the .7394 main top.

Bearish Scenario

The inability to overcome or a sustained move under .7204 will signal the return of sellers. This could trigger a pullback into the main Fibonacci level at .7153, followed by an uptrending Gann angle at .7104. The Gann angle is important to the structure of the chart pattern. It stopped the selling on January 25.