AUD/USD Forex Technical Analysis – May 21, 2019 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 long-term uptrending Gann angle at .6886.
James Hyerczyk
AUD/USD

The Australian Dollar is trading sharply lower on Tuesday, erasing all of yesterday’s short-lived gains that were generated by Saturday’s surprise election results. Dovish Reserve Bank monetary policy meeting minutes and comments from the central bank chief ignited the renewed selling pressure.

The minutes of the RBA’s May 7 monetary policy meeting said a rate cut would be appropriate if the labor market shows no further improvement.

Meanwhile, RBA Governor Philip Lowe further pressured prices after he said he’ll consider cutting interest rates at next month’s meeting to spur faster hiring, saying that the jobless rate needs to move below 5% to help drive inflation back to its target.

At 06:02 GMT, the AUD/USD is trading .6877, down 0.0030 or -0.43%.

Daily AUD/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through .6864 will signal a resumption of the downtrend. The next major target is the January 3 main bottom at .6764.

The AUD/USD is in no position to change the main trend to up so we’ll have to wait for a closing price reversal bottom to generate a counter-trend rally.

The minor trend is also down. A trade through .6935 will change the minor trend to up. This will also shift momentum to the upside.

The major retracement zone resistance is .6967 to .7030.

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 long-term uptrending Gann angle at .6886.

Bearish Scenario

A sustained move under .6886 will indicate the presence of sellers. This could trigger a further break into the minor bottom at .6864. Taking out this level could trigger an acceleration into the next uptrending Gann angle at .6825. This is the last potential support angle before the .6764 main bottom.

Bullish Scenario

Overcoming and sustaining a move over .6886 will signal the return of buyers. If strong buying volume is able to generate enough upside momentum then look for the rally to possibly extend into the minor top at .6935, followed by a resistance cluster at .6966 to .6967.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US