AUD/USD Forex Technical Analysis – Main Trend Changed to Down on Tuesday with .7379 – .7363 Next Target Area

The Australian Dollar plunged on Tuesday after the Reserve Bank of Australia (RBA) sounded a more dovish tone than investors had anticipated, sending the Aussie to its biggest one-day loss since September 29.

Australia’s central bank did not display the hawkish pivot markets were expecting, sending the Aussie Dollar down to its weakest level since October 19.

On Tuesday, the AUD/USD settled at .7428, down 0.0094 or -1.24%.

The RBA stressed that inflation was still too low, although it also omitted its previous projection that rates were unlikely to rise until 2024 and dropped a key target for the April government bond.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Tuesday when sellers took out the October 22 main bottom at .7454. A move through .7556 will change the main trend to up.

The AUD/USD also closed on the weak side of a 50% level at .7440, making it resistance. This is followed by additional resistance levels at .7468 and .7499.

On the downside, potential support levels come in at .7379, .7363 and .7317.

Daily Swing Chart Technical Analysis

The direction of the AUD/USD early Wednesday is likely to be determined by trader reaction to .7440.

Bearish Scenario

A sustained move under .7440 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into .7379 and .7363.

A failure to hold .7363 will indicate the selling is getting stronger with .7317 the next likely target.

Bullish Scenario

A sustained move over .7440 will signal the presence of buyers. Since the main trend is down, this could create selling opportunities at .7468 and .7499.