AUD/USD Forex Technical Analysis – Main Trend Changes to Up on Trade Through .7397

The Australian Dollar is trading higher on Thursday, following through to the upside following yesterday’s reversal to the upside. After an early session setback on Wednesday, the Aussie posted a dramatic recovery into the close following a lukewarm Federal Reserve statement and dovish remarks from Fed Chair Jerome Powell.

At 06:45 GMT, the AUD/USD is trading .7385, up 0.0011 or +0.15%.

On Wednesday, the Federal Reserve concluded its two-day meeting of the Federal Open Market Committee (FOMC) by making no move on asset purchases. Shortly thereafter, Powell cautioned in his press conference that although the economy is making progress toward its goals, it has a ways to go before the central bank would actually adjust its easy policies.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7397 will change the main trend to up. A move through .7290 will signal a resumption of the downtrend. Taking out .7397 will also turn .7317 into a new main bottom.

The minor trend is also down. A new minor bottom has formed at .7317.

The minor range is .7290 to .7397. Its pivot at .7343 is support.

The AUD/USD is currently straddling a long-term Fibonacci level at .7379.

The short-term range is .7503 to .7290. Its retracement zone at .7397 to .7422 is the next upside target. The upper or Fibonacci level at .7422 is a potential trigger point for an acceleration to the upside.

Daily Swing Chart Technical Forecast

The direction of the AUD/USD on Thursday is likely to be determined by trader reaction to .7379.

Bullish Scenario

A sustained move over .7379 will indicate the presence of buyers. This could lead to a change in the main trend and a labored rally into .7397 to .7422.

The trigger point for an acceleration to the upside is .7422 with the primary upside target .7499 to .7503.

Bearish Scenario

A sustained move under .7379 will signal the presence of sellers. This could trigger a pullback into .7343. If this level fails then look for the selling to possibly extend into the .7317 minor bottom. Taking out this level could trigger a further break into the main bottom at .7290.