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AUD/USD Forex Technical Analysis – July 16, 2018 Forecast

By:
James Hyerczyk
Published: Jul 16, 2018, 07:23 UTC

Based on the early trade, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the short-term 50% level at .7422. The main trend is down according to the daily swing chart. However, momentum shifted to the upside with the formation of the secondary higher bottom on July 12. The main trend will change to up on a trade through .7484. A trade through .7360 will signal a resumption of the downtrend.

AUD/USD

The Australian Dollar continues to grind higher early Monday on the back of increased demand for risk and perhaps an easing of trade tensions between the United States and China. Traders could also be reacting to positive trade talks between China and the European Union. However, softer economic data from China may be limiting gains.

At 0711 GMT, the AUD/USD is trading .7431, up 0.0007 or +0.09%.

AUDUSD
Daily AUD/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted to the upside with the formation of the secondary higher bottom on July 12. The main trend will change to up on a trade through .7484. A trade through .7360 will signal a resumption of the downtrend. A trade through .7310 will put the AUD/USD in a bearish position with .7159 the next major target.

The short-term range is .7484 to .7360. Its 50% level or pivot is .7422. Trading on the strong side of this level early Monday is helping to give the Forex pair an upside bias.

The intermediate range is .7310 to .7484. Its retracement zone at .7397 to .7376 is new support.

The main range is .7677 to .7310. If the trend changes to up then its retracement zone at .7494 to .7537 will become the primary upside target.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the short-term 50% level at .7422.

A sustained move over .7422 will indicate the presence of buyers. If this move generates enough upside momentum then look for a test of .7484, followed by .7494.

A sustained move under .7422 will signal the presence of sellers. This could trigger a labored break with potential targets lined up at .7397, .7376 and .7360. The main bottom at .7360 is a potential trigger point for an acceleration into .7310.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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