AUD/USD Forex Technical Analysis – July 10, 2018 Forecast

The Australian Dollar is trading lower against the U.S. Dollar early Tuesday, while trading inside yesterday’s range. The chart pattern suggests investor indecision and impending volatility. Investors are getting mixed short-term signals. While increased demand for higher risk assets may be unpinning prices, rising U.S. Treasury yields is helping to limit gains.

At 0719 GMT, the AUD/USD is trading .7462, down 0.0002 or -0.03%.

Traders are also reacting to domestic data which came in relatively unchanged and inflation data from China which broadly matched expectations.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher.

The minor trend is up. This is giving momentum its upside bias. The trend will change to down on a move through .7361.

The main range is .7677 to .7310. Its retracement zone at .7494 to .7537 is the primary upside target and resistance. Since the main trend is down, sellers are likely to show up on a test of this zone.

The new short-term range is .7310 to .7484. Its retracement zone at .7397 to .7376 is the primary downside target. Aggressive counter-trend buyers could come in on a test of this zone in an effort to form a secondary higher bottom.

Daily Technical Forecast

Today’s early inside range indicates that the direction of the AUD/USD will likely be determined by trader reaction to yesterday’s high at .7484.

A sustained move under .7484 will indicate the presence of sellers. If the sellers take control today then look for a possible pullback into the uptrending Gann angle at .7430. We may get a technical bounce on the first test of this angle, but if it fails then look for a potential break into the short-term retracement zone at .7397 to .7376.

A sustained move over .7484 will signal the presence of buyers. This could drive the AUD/USD into the main 50% level at .7494. If buyers continue to come in over this level then look for the move to extend with the Fibonacci level at .7537 the next likely target.