AUD/USD Forex Technical Analysis – On a Path to Challenge June 6, 2018 Main Top at .7677

Increased demand for higher risk assets is helping to drive the Australian Dollar higher on Tuesday after yesterday’s closing price reversal top. The move is being fueled by investors looking past new restrictions to fight COVID-19 and focusing on the likelihood of more U.S. stimulus that would weigh on the U.S. Dollar.

At 20:08 GMT, the AUD/USD is trading .7561, up 0.0028 or +0.37%.

“The big picture is that 2021 looks increasingly promising for global growth, and while the U.S. will certainly be a part of that, the global reflation trade is going to support the risk-sensitive currencies like the Australian Dollar,” said Westpac currency analyst Sean Callow.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7578 will signal a resumption of the uptrend. The main trend will change to down on a move through .7339.

The minor trend is also up. A trade through .7372 will change the minor trend to down. This will also shift momentum to the downside.

On a trade through .7578, a new minor bottom will form at .7507.

The minor range is .7372 to .7578. Its 50% level at .7475 is the first support.

The short-term range is .7339 to .7578. Its 50% level at .7458 is the second support.

Daily Swing Chart Technical Forecast

The upside momentum is strong and there is evidence that buyers are coming in on the dips. This could trigger another breakout over .7578. The daily chart indicates there is no actual resistance until the June 6, 2018 main top at .7677 so we could see another acceleration to the upside.

Since the main trend is up, buyers are expected to come in on a test of .7475 and .7458. A break under this zone will be a sign of weakness.