AUD/USD Forex Technical Analysis – June 12, 2019 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 short-term 50% level at .6943.
James Hyerczyk
AUD/USD

The Australian Dollar is under pressure on Wednesday shortly before the U.S. opening despite weaker U.S. Treasury yields. The price action is being driven by weaker domestic consumer confidence data. According to the Westpac-Melbourne Institute, consumer confidence edged lower and concerns about jobs grew as the Reserve Bank of Australia rate cut appears to have sparked unease among households.

At 10:16 GMT, the AUD/USD is trading .6948, down 0.0012 or -0.16%.

The Westpac Consumer Sentiment Index dipped 0.6 percent to 100.7 in June, cancelling the rise of the previous reading but remaining above the 100-level that separates optimism from pessimism.

“This is a disappointing result given the cut in official interest rates this month and suggests deepening concerns about the economy have outweighed the initial boost from lower rates,” Westpac economist Matthew Hassan said.

Daily AUD/USD

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 .69244 showed be watch closely. Since the trend is up, buyers may come in on a test of this zone in an effort to form a secondary higher bottom.

The intermediate range is .7069 to .6864. Its retracement zone at .6967 to .6991 is acting like 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 short-term 50% level at .6943.

Bullish Scenario

A sustained move over .6943 will indicate the presence of buyers. Overcoming the uptrending Gann angle at .6954 will indicate the buying is getting stronger. This could lead to a test of the intermediate 50% level at .6967. Taking out this level could trigger a surge into the intermediate Fibonacci level at .6991.

Bearish Scenario

Taking out .6943 will signal the presence of sellers. This could trigger a hard break into the short-term Fibonacci level at .6924. This is followed closely by the uptrending Gann angle at .6909. This is the last potential Gann angle support before the main bottoms at .6899 and .6864.

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