AUD/USD Forex Technical Analysis – June 27, 2018 Forecast

The Australian Dollar is trading slightly lower shortly before the U.S. opening. The currency is being supported by a drop in U.S. Treasury yields. This is helping to tighten the spread between U.S. Government bonds and Australian Government bonds, helping to make the Aussie a more attractive asset than the U.S. Dollar at this time.

At 1004 GMT, the AUD/USD is trading .7382, down 0.0010 or -0.14%.

Helping to limit gains is lower demand for higher risk assets amid concerns over escalating trade tensions between the United States and China.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7345 will signal a resumption of the downtrend.

The minor trend is also down. A trade through .7445 will change the minor trend to up. This will also shift momentum to the upside.

The short-term range is .7677 to .7345. If a support base is built then this may generate the momentum needed to challenge the retracement zone at .7511 to .7550.

Daily Technical Forecast

Based on the early trade, the direction of the AUD/USD is likely to be determined by trader reaction to a long-term uptrending Gann angle at .7402 and a downtrending Gann angle at .7377.

A sustained move under .7377 will indicate the presence of sellers. This could trigger a break into the minor bottom at .7345, followed by the May 9, 2017 main bottom at .7329.

We could see a technical bounce on the first test of .7329, however, if it fails then look for a further break into a long-term uptrending Gann angle at .7280. This level is a trigger point for an acceleration to the downside.

Holding above .7377 will indicate the selling pressure is weakening. Overcoming and sustaining a rally over .7402 will signal the presence of buyers. This could trigger a surge into the minor top at .7445.

Look for resistance at .7445 if sellers decide to defend the trend. If it fails then look for a shift in momentum to the upside then a possible drive into .7511 over the near-term.