AUD/USD Forex Technical Analysis – October 9, 2018 Forecast

Based on the current price at .7070, the direction of the AUD/USD the rest of the day is likely to be determined by trader reaction to the pivot at .7068.
James Hyerczyk
AUD/USD
AUD/USD

The Australian Dollar is trading lower shortly before the U.S. opening. Early in the session, the Aussie was supported by China’s move to stimulate the economy by injecting stimulus into the financial system. However, sellers regained control after the U.S. 10-year and 30-year Treasury yields hit multi-year highs.

The longer-term trend remains bearish, but we may be ripe for a short-covering rally. However, this isn’t a guarantee, no matter how low your oversold oscillator goes. This is why I prefer to watch the actual price action rather than a smoothed indicator or oscillator.

At 0927 GMT, the AUD/USD is trading .7071, down 0.0008 or -0.11%.

The price action will show the turn in the market before the oscillator, which makes it a lagging indicator.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The AUD/USD is far from changing the main trend to up, but it is in the window of time for a closing price reversal bottom. However, it needs to take out .7042 then close higher in order to accomplish that. A trade through .7042 will signal a resumption of the downtrend with the next target the February 9, 2016 main bottom at .6973.

The minor trend is also down. Today’s price action made .7042 a new main bottom.

The new minor range is .7042 to .7094. Its 50% level or pivot at .7068 is currently being tested. Trader reaction to this level will let us know if counter-trend buyers are coming in to produce a minor secondary higher bottom.

If a new main range forms between .7314 and .7042 then its retracement zone at .7178 to .7210 will become the primary upside target.

Daily Technical Forecast

Based on the current price at .7070, the direction of the AUD/USD the rest of the day is likely to be determined by trader reaction to the pivot at .7068.

A sustained move over .7068 will indicate the presence of counter-trend buyers. If this creates enough upside momentum, then look for buyers to make a run at .7094. This is a potential trigger point for an acceleration into the downtrending Gann angle at .7134.

A sustained move under .7068 will signal the presence of sellers. If this move can generate some downside momentum then look for sellers to make a run at .7042. This is a potential trigger point for an acceleration to the downside with .6973 a potential target.

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
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