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

The Australian Dollar is under pressure against the U.S. Dollar on Monday after a deal between the United States and Mexico helped ease concerns over a U.S. economic slowdown. The news is putting some upward pressure on U.S. Treasury yields, which is making the greenback a more attractive investment. It’s also helping to dampen expectations of a Fed rate cut in June and July.

At 06:23 GMT, the AUD/USD is trading .6970, down 0.0032 or -0.45%.

Rising Treasury yields could widen the spread between U.S. Government bond yields and Australian Government bond yields. This would increase demand for the U.S. Dollar.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7022 will signal a resumption of the uptrend. The main trend will change to down on a move through .6899.

The main range is .7206 to .6864. Its retracement zone at .7035 to .7075 is resistance.

The minor range is .7069 to .6864. The AUD/USD has been straddling its retracement zone at .6966 to .6991 for six consecutive sessions. This zone is controlling the short-term direction of the Forex pair.

Daily Technical Forecast

Based on the early price action, and the current price at .6970, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the minor 50% level at .6966.

Bullish Scenario

A sustained move over .6966 will indicate the presence of buyers. The first upside target is the minor Fibonacci level at .6991.

Taking out .6991 could trigger an acceleration into the downtrending Gann angle at .7016. This Gann angle stopped the rally last week at .7022. Overtaking this angle will lead to a test of the main 50% level at .7035.

Bearish Scenario

A sustained move under .6966 will signal the presence of sellers. This could trigger a sharp break into an uptrending Gann angle at .6944. Look for a technical bounce on the first test of this angle.

If .6944 fails as support then look for a potential acceleration to the downside with the next targets an uptrending Gann angle at .6904 and a main bottom at .6899. These are the last potential support points before the .6864 main bottom.