AUD/USD Forex Technical Analysis – October 11, 2018 Forecast

The Australian Dollar is trading higher on Thursday on increased demand for higher risk assets and a U.S. consumer inflation report that showed prices increased less than expected last month. A recovery in the stock market after early session weakness could also be a sign that investors are comfortable taking on risk after yesterday’s steep sell-off. The lower-than-expected CPI may mean the Fed won’t have to be as aggressive when raising interest rates.

At 0117 GMT, the AUD/USD is trading .7096, up 0.0021 or +0.29%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7042 will signal a resumption of the downtrend. The Forex pair is in no position to change the main trend to up.

The minor trend is also down. A trade through .7131 will change the minor trend to up. This will also shift momentum to the upside.

The short-term range is .7042 to .7131. Its 50% level or pivot is .7087. This price is controlling the direction of the AUD/USD today.

The main range is .7314 to .7042. If the minor trend changes to up then its retracement zone at .7178 to .7210 becomes the primary upside target.

Daily Swing Chart Technical Forecast

Based on the current trade, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the pivot at .7087.

A sustained move over .7087 will signal the presence of buyers. If this creates enough upside momentum then look for buyers to make a run at .7131. Taking out this minor top will indicate the buying is getting stronger. This could trigger an acceleration into the 50% level at .7178.

A sustained move under .7087 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to extend into .7042. This is the last major support before the February 9, 2016 main bottom at .6973.