AUD/USD Forex Technical Analysis – July 29, 2019 Forecast

The Australian Dollar is trading slightly lower early Friday as traders position themselves ahead of Tuesday’s Australian CPI report and the release of Wednesday’s U.S. Federal Reserve monetary policy statement and interest rate decision.

The Aussie is also feeling pressure from comments made last week by Reserve Bank of Australia (RBA) Governor Philip Lowe. He said that the even if the RBA doesn’t lower rates on August 6, interest rates will remain low for a long time. Furthermore, Westpac moved its forecast forward, calling for another rate cut in October.

At 08:31 GMT, the AUD/USD is trading .6906, down 0.0006 or -0.08%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed on Friday when sellers took out the previous main bottom at .6911. If the downside momentum continues then look for the selling to possibly extend into the next main bottom at .6832 over the near-term.

The main trend will change to up on a trade through .7082. This is highly unlikely but the Forex pair is nearly inside the window of time for a closing price reversal bottom.

The main range is .6832 to .7082. The AUD/USD is currently trading on the weak side of its retracement zone at .6928 to .6957, making this area resistance.

Daily Technical Forecast

Based on the early price action and the current price at .6906, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the uptrending Gann angle at .6905.

Bullish Scenario

A sustained move over .6905 will indicate the presence of buyers. Turning higher for the session will indicate the buying is getting stronger. This could trigger a move into the Fibonacci level at .6928.

Overtaking .6928 could trigger an acceleration to the upside with the next target the 50% level at .6957.

Bearish Scenario

A sustained move under .6905 will signal the presence of sellers. The daily chart is wide open under this angle with the next target angle coming in at .6868. This is the last potential support angle before the .6832 main bottom. Be prepared for a potential acceleration to the downside if .6905 fails as support.