AUD/USD Forex Technical Analysis – July 10, 2019 Forecast

The Australian Dollar is under pressure early Wednesday as investors prepare for remarks from Federal Reserve Chairman Jerome Powell that could help determine the direction of U.S. interest rates. The Aussie has been under pressure all week due to the widening interest rate differential between U.S. Government bonds and Australian Government bonds.

At 06:39 GMT, the AUD/USD is trading .6919, down 0.0011 or -0.15%.

Also pressuring the Aussie is the weaker-than-expected Westpac Consumer Sentiment report and disappointing producer inflation data from China.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top at .7048 on July 4.

A trade through .7048 will negate the closing price reversal top and signal a resumption of the uptrend. The trend will change to down on a trade through .6832.

The short-term range is .6832 to .7048. The market is currently testing its retracement zone at .6940 to .6914. This zone is controlling the near-term direction of the AUD/USD.

The main range is .7206 to .6832. Its retracement zone at .7019 to .7063 is resistance. It’s also controlling the longer-term direction of the AUD/USD. This zone stopped the rally on July 4 at .7048.

Daily Technical Forecast

Based on the early price action and the current price at .6919, the direction of the AUD/USD on Wednesday is likely to be determined by trader reaction to the short-term Fibonacci level at .6914 and the uptrending Gann angle at .6912.

Bullish Scenario

A sustained move over .6914 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to extend into the short-term 50% level at .6940. This is a potential trigger point for an acceleration into a steep downtrending Gann angle at .6968.

Overcoming .6968 will indicate the buying is getting stronger with the next upside target another downtrending Gann angle at .7008.

Bearish Scenario

Taking out .6912 will signal the presence of sellers. Crossing to the weak side of a longer-term downtrending Gann angle at .6906 could trigger an acceleration to the downside with the next target angle coming in at .6872. This is the last potential support angle before the .6832 main bottom.