AUD/USD Forex Technical Analysis – Key Support is Layered at .7527 to .7486

A steep sell-off in crude oil helped drive the commodity-linked Australian Dollar sharply lower on Friday. However, losses were likely limited by a drop in U.S. Treasury yields.

The AUD/USD settled at .7547, down 0.0030 or -0.40%.

Crude oil futures fell when Russia and Saudi Arabia hinted that they were considering increasing production in an effort to control prices. The drop in Treasury yields continued to be fueled by Wednesday’s dovish Fed minutes which indicated the central bank may not be as aggressive as expected when raising rates this year.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7606 will signal a resumption of the uptrend.

The minor trend is also up. A move through .7522 will change the minor trend to down and also shift momentum to the downside.

The main range is .7812 to .7412. Its retracement zone at .7612 to .7659 is the primary upside target. Sellers could show up on a test of this zone.

The intermediate range is .7412 to .7606. Its retracement zone at .7509 to .7486 is the primary downside target.

The short-term range is .7448 to .7606. Its 50% level or pivot at .7527 is acting like support.

Daily Swing Chart Technical Forecast

If crude oil continues to sell-off then the AUD/USD may press into a series of potential support levels at .7527, .7522 and .7509. Rising Treasury yields will also contribute to the selling pressure. If .7509 fails as support then look for the selling to extend into .7486. This level is a potential trigger point for an acceleration to the downside with .7448 the next major target.

If crude oil prices stabilize and yields continue to weaken then look for buyers to drive the AUD/USD into .7606 to .7612. The latter is a potential trigger point for an acceleration into the main Fibonacci level at .7659.