AUD/USD Forex Technical Analysis – July 30, 2019 Forecast

The Australian Dollar is edging lower against the U.S. Dollar on Tuesday. Some of the selling pressure is in reaction to weaker-than-expected domestic economic data released earlier in the session. Australian Building Approvals came in at -1.2%, below the 0.2% forecast. On Wednesday, investors will get the opportunity to react to the latest quarterly Consumer Inflation report. It is expected to show an increase of 0.5%, up from 0.0%. This report could determine how aggressive the Reserve Bank of Australia (RBA) will be with future rate cuts.

At 07:27 GMT, the AUD/USD is trading .6896, down 0.0005 or -0.08%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. Taking out yesterday’s low at .6895 will indicate the selling pressure is getting stronger. The next potential downside target is the main bottom at .6832.

The main trend will change to up on a move through .7082. This is highly unlikely. However, the AUD/USD is down seven sessions from its last main top which puts it inside the window of time for a potentially bullish closing price reversal bottom.

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

Daily Technical Forecast

Based on the early price action and the current price at .6896, the direction of the AUD/USD on Tuesday will likely be determined by trader reaction to the uptrending Gann angle at .6907.

Bearish Scenario

A sustained move under .6907 will indicate the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the next uptrending Gann angle at .6870. This is the last potential support angle before the .6832 main bottom.

Bullish Scenario

A sustained move over .6907 will signal the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the Fibonacci level at .6928. Overcoming this level will indicate the buying is getting stronger with the next target a downtrending Gann angle at .6942.

Overview

Taking out .6894 then turning higher for the session will put the AUD/USD in a position to post a closing price reversal bottom. This could produce an intraday counter-trend rally.