AUD/USD Forex Technical Analysis – May 24, 2018 Forecast

The AUD/USD is trading steady shortly after the U.S. opening. The Forex pair is trading inside yesterday’s range suggesting investor indecision and impending volatility.

The Aussie is being underpinned today by a drop in U.S. Treasury yields tied to yesterday’s release of dovish Fed minutes from its May monetary policy meeting. Perhaps limiting gains are renewed geopolitical worries and weaker commodity prices.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7606 will signal a resumption of the uptrend. The trend changes to down on a move through .7448.

The short-term range is .7448 to .7606. Its 50% level or pivot at .7527 provided support on Wednesday.

Another short-term range is .7412 to .7606. Its retracement zone at .7509 to .7486 is another downside target. Since the main trend is up, buyers could come in on a test of this area.

The main range is .7812 to .7412. If the rally continues then we could see a test of its retracement zone at .7612 to .7659. This zone is controlling the longer-term direction of the AUD/USD so look for aggressive counter-trend selling pressure on a test of this area.

Daily Swing Chart Technical Forecast

The inside move and the early trade indicates traders aren’t sure how to play the AUD/USD, likely due to the conflicting fundamentals.

Taking out yesterday’s high at .7583 could generate the upside momentum needed to challenge the minor top at .7606 and the main 50% level at .7612.

If sellers take control then look for a possible break into the pair of 50% levels at .7527 and .7509. Since the main trend is up, buyers are likely to come in on a test of this zone.

The direction of U.S. Treasury yields today is likely to be the catalyst behind the price action.