AUD/USD Forex Technical Analysis – June 6, 2018 Forecast

The Australian Dollar is trading higher against the U.S. Dollar early Wednesday in response to bullish economic growth data. Australian economic growth rose strongly in the first three months of the year, boosted by household consumption, government demand, stronger exports and a lift in business inventories.

At 0448 GMT, the AUD/USD is trading .7656, up 0.0039 or +0.51%.

The economy expanded by 1% in real terms, leaving the increase on a year earlier at 3.1%, the fastest since the middle of last year. Traders were looking for a rise of 0.9%. The previous quarter’s data was revised higher to 0.5%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. On Tuesday, the AUD/USD posted an inside move. This suggests investor indecision and impending volatility. Today’s early trade has the Forex pair in a position to overtake the high of the week at .7667. This move would signal a resumption of the uptrend.

The main range is .7812 to .7412. Its retracement zone at .7612 to .7659 is currently being tested. This zone is controlling the longer-term direction of the market.

The short-term range is .7476 to .7667. Its retracement zone at .7571 to .7549 is the primary downside target and potential support. Since the main trend is up, buyers could come in on a test of this zone.

Daily Swing Chart Technical Forecast

Based on the current price at .7656, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to .7659 and .7667.

A sustained move over .7667 will indicate the presence of buyers. This could trigger the start of a prolonged rally. The daily chart indicates there is plenty of room to the upside with the next major top coming in at .7812.

A sustained move under .7659 will signal the presence of sellers. This could lead to a retest of the 50% level at .7612. This is price is a potential trigger point for an acceleration into the short-term retracement zone at .7571 to .7549.