AUD/USD Forex Technical Analysis – November 6, 2018 Forecast

The Australian Dollar is trading higher shortly after the U.S. opening on Tuesday. After trading flat earlier in the session, the Aussie began to pick up strength following the release of the Reserve Bank of Australia’s monetary policy decision and rate statement. As expected, the RBA kept its official cash rate on hold at 1.50 percent. That keeps rates at a record low and extends to 25 the record number of meetings without a change. The RBA retained an upbeat stance in its post decision statement noting:  “Forecasts for economic growth in 2018 and 2019 have been revised up a little.”

At 1215 GMT, the AUD/USD is trading .7232, up 0.0023 or +0.32%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7259 will indicate the buying is getting stronger. The next upside target is the main top at .7314. The AUD/USD is not in a position to change to down, but it is in the window of time for a closing price reversal top.

On Friday, the AUD/USD did form a reversal top but it has not been confirmed. It will be confirmed on a trade through .7182.

The main range is .7314 to .7020. The AUD/USD is currently trading on the strong side of its retracement zone at .7202 to .7167. This zone is new support.

Daily Technical Forecast

Based on the early price action, the direction of the AUD/USD is likely to be determined by trader reaction to the Fibonacci level at .7202.

A sustained move over .7202 will indicate the presence of buyers. The next target is a downtrending Gann angle at .7242. This angle is currently being tested. Overtaking the angle will indicate the buying is getting stronger with the next target .7259. This is also the trigger point for a move into the next downtrending Gann angle at .7278. This is the last potential resistance angle before the .7314 main top.

The inability to overcome the angle at .7242 will signal the return of sellers. If this move creates enough downside momentum then look for a retest of the Fib at .7202. If this price level fails then look for the selling to possibly extend into a support cluster at .7169, .7167 and an important uptrending Gann angle at .7160.

The daily chart is wide open to the downside under .7160.