AUD/USD Forex Technical Analysis – June 20, 2018 ForecastBased on the early price action, the direction of the AUD/USD on Wednesday is likely to be determined by trader reaction to the long-term uptrending Gann angle at .7398. The AUD/USD is down 10 session from its last main top so it may be ripe for a short-covering rally.
The Australian Dollar is trading slightly better early Wednesday as tensions over the trade rift between the United States and China eased, at least temporarily. Persistent worries about a possible trade war and a drop in U.S. Treasury yields could cap the currency’s gains, however.
At 0241 GMT, the AUD/USD is trading .7397, up .0.0015 or +0.20%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through .7347 will signal a resumption of the downtrend. This could lead to a test of the May 9, 2017 bottom at .7329. On Tuesday, the AUD/USD took out the June 2, 2017 bottom at .7372.
The Forex pair is currently trading in a dangerous area because a sustained move under .7329 could lead to an eventual test of the next target, the December 23, 2016 main bottom at .7159.
Daily Technical Forecast
Based on the early price action, the direction of the AUD/USD on Wednesday is likely to be determined by trader reaction to the long-term uptrending Gann angle at .7398.
A sustained move under .7398 will indicate the presence of sellers. This could lead to a retest of the June 2, 2017 main bottom at .7372. Taking out this level will indicate that sellers are still in control.
The next targets under .7372 are yesterday’s low at .7347 and the May 9, 2017 main bottom at .7329.
Taking out .7329 will indicate the selling is getting stronger. This could lead to a test of the support cluster at .7280 to .7277. Crossing to the weak side of .7277 will put the AUD/USD in an extremely bearish position.
A sustained move over .7398 will signal the presence of buyers. If this move generates enough upside momentum then look for a possible acceleration to the upside with the downtrending Gann angle at .7477 the next upside target.
The AUD/USD is down 10 session from its last main top so it may be ripe for a short-covering rally.