AUD/USD Forex Technical Analysis – March 18, 2019 Forecast

The Australian Dollar is trading higher on Monday ahead of Tuesday’s release of the minutes from the Reserve Bank of Australia’s monetary policy meeting earlier in the month. Traders are looking for the minutes to confirm a more dovish stance by the RBA, which could point toward its first rate cut since August 2016. Traders could also be pricing in a more accommodative tone from the Fed after its monetary policy and interest rate decisions on Wednesday. Central bank policymakers are also expected to release new economic projections that could determine the number of rate hikes this year.

At 12:18 GMT, the AUD/USD is trading .7106, up 0.0020 or +0.28%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up earlier today when buyers took out the previous main top at .7099. The new main bottom is .7041. A trade through this level will change the main trend to down.

The short-term range is .7207 to .7003. The market is currently testing its retracement zone at .7105 to .7129.

The Forex pair is also trading inside a major retracement zone at .7079 to .7153. Trader reaction to this zone will determine the longer-term direction of the AUD/USD.

Daily Technical Forecast

Based on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the short-term 50% level at .7105.

Bullish Scenario

A sustained move over .7105 will indicate the presence of buyers. If this move creates enough upside momentum then look for a potential surge into the price cluster at .7122, .7123 and .7129. Overtaking .7129 could trigger an acceleration into .7153.

Bearish Scenario

A sustained move under .7105 will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside with the nearest targets a 50% level at .7079 and an uptrending Gann angle at .7063.