AUD/USD Forex Technical Analysis – June 11, 2019 Forecast

Firmer U.S. Treasury yields and the threat of new U.S. tariffs on China are weighing on the Australian Dollar on Tuesday. Underpinning the currency, however, is the NAB Business Confidence report, which showed a reading of 7, up from 0. Later today, investors will get the opportunity to react to a U.S. report on producer inflation. A lower number will increase the odds of a Fed rate cut in either June or July.

At 10:30 GMT, the AUD/USD is trading .6957, down 0.0004 or -0.03%.

Daily Technical Analysis

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

The short-term range is .6864 to .7022. Its retracement zone at .6943 to .6924 is the primarily downside target. Since the main trend is up, buyers could come in on a test of the area.

The intermediate range is .7069 to .6864. Its retracement zone at .6967 to .6991 is resistance.

Daily Technical Forecast

Based on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at .6949. This angle stopped the selling earlier today.

Bullish Scenario

A sustained move over .6949 will indicate the presence of buyers. The first target is the intermediate 50% level at .6967. Overtaking this level will indicate the buying is getting stronger. This could trigger a rally into the intermediate Fibonacci level at .6991. This is followed by a downtrending Gann angle at .7011. This angle stopped the selling on June 7 at .7022.

Bearish Scenario

A sustained move under .6949 will signal the presence of sellers. The first target is the short-term 50% level at .6943. Taking out this level could trigger a quick break into the short-term Fib at .6924. If this level fails then the selling is likely to extend into the next uptrending Gann angle at .6907. This is the last potential support angle before the .6899 and .6864 main bottoms.

Overview

The trend is up so if it is going to continue over the near-term then buyers are going to have to come in to produce a new secondary higher bottom. The retracement zone at .6943 to .6924 represents value so if tested, buyers are likely to show up on a test of this area.