AUD/USD Forex Technical Analysis – January 31, 2019 Forecast

The Australian Dollar is trading higher on Thursday after surging to the upside the previous session in reaction to the dovish U.S. Federal Reserve. Also helping to support the Aussie is the latest quarterly consumer inflation data that beat expectations. Buyers seem to be showing almost no reaction to the weaker-than-expected manufacturing PMI report from China.

At 05:49 GMT, the AUD/USD is trading .7269, up 0.0021 or +0.29%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The main trend changed to up on the trade through .7236 on Wednesday. The uptrend was reaffirmed when buyers took out the next swing top at .7247. The next swing chart target is the December 3 main top at .7394. The main trend will change to down when sellers take out .7076.

The minor trend is also up. A trade through .7138 will change the minor trend to down. This will also shift momentum to the downside.

The main range is .7394 to .6764. Trading above its retracement zone at .7153 to .7079 is helping to generate the upside momentum. This zone is new support.

Daily Technical Forecast

Based on the early trade, the first upside target is the downtrending Gann angle at .7292. We could see a technical bounce on the first test of this angle. Overcoming it will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the next target angle coming in at .7343. This is the last potential resistance angle before the .7394 main top.

On the downside, if the rally doesn’t attract enough buyers to continue then look for a pullback into the previous main tops at .7247 and .7236. These are minor levels, but breaking back under them will indicate most of the buying has been short-covering.

The major support that must hold is the uptrending Gann angle at .7164. This angle, moving up at a rate of .002 since the main bottom at .6764 on January 3, has been guiding the Forex pair higher for 20 trading sessions.