AUD/USD Forex Technical Analysis – June 8, 2018 Forecast

Lower demand for higher risk assets is helping to drive the AUD/USD lower on Friday. Traders are also taking profits after a nearly month-long rally. Thursday’s weak Trade Balance report may be a catalyst behind the move as well as position-squaring ahead of this week-end’s G-7 conference and several central bank monetary policy meetings next week.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Today’s sell-off has created a new main top at .7677. A trade through this top will signal a resumption of the uptrend. A move through .7476 will change the main trend to down.

The minor trend is also up. A trade through .7515 will change the minor trend to down and shift momentum to the downside.

The main range is .7812 to .7412. Its retracement zone at .7612 to .7659 is resistance. This zone is also controlling the longer-term direction of the AUD/USD.

The short-term range is .7412 to .7677. Its retracement zone at .7544 to 7513 is the primary downside target. Since the main trend is up, buyers could step in on the first test of this zone. They are going to try to form a new higher bottom.

Daily Swing Chart Technical Forecast

Based on the early trade and the intraday momentum, the direction of the AUD/USD all session will be determined by trader reaction to .7612.

Look for a bearish tone as long as the AUD/USD remains under .7612. If the current downside momentum continues then look for a test of the short-term 50% level at .7544. Look for a technical bounce on the first test of this level.

If .7544 fails then look for the selling to extend into .7515 to .7513. Once again, we could see buyers show up.

Overtaking and sustaining a rally over .7612 will signal the return of buyers. This could trigger a rally into .7659 then .7677.