AUD/USD Forex Technical Analysis – Main Trend Changed to Down on Friday

The AUD/USD extended last week’s losses early Monday before turning slightly higher. The Forex pair is essentially trading steady after plunging on Friday following the release of upbeat U.S. jobs data, which sent bond yields surging on the prospects of increasing inflation and sharply lower equities.

Daily Swing Chart Analysis

The main trend is down according to the daily swing chart. The trend turned down on Friday when sellers took out the swing bottom at .7956. If the selling pressure continues then look for a possible move into the next swing bottom at .7807.

The short-term range is .7807 to .8135. Its retracement zone is .7971 to .7932. Trading on the weak side of this zone is also helping to give the AUD/USD a downside bias.

The main trend is .7501 to .8135. An acceleration to the downside could lead to a break into its retracement zone at .7818 to .7743.

Daily Swing Chart Forecast

Based on the early price action, the direction of the AUD/USD the rest of the session will be determined by trader reaction to the short-term Fibonacci level at .7932.

A sustained move under .7932 will signal the presence of sellers. If this move generates enough downside momentum we could see an eventual move into the main 50% level at .7818, followed closely by the main bottom at .7807.

A sustained move over .7932 will indicate the presence of buyers. This could trigger a rally back into the short-term 50% level at .7971. Taking out this level could trigger a further rally equal to about 50% of the break from the .8135 main top.