AUD/USD Forex Technical Analysis – Rally Stalls in Front of Main Retracement Zone at .7770 – .7826The direction of the AUD/USD into the close on Friday is likely to be determined by trader reaction to the short-term Fibonacci level at .7728.
The Australian Dollar is trading lower late in the session on Friday as investors took profits ahead of the weekend after hitting its highest level since March 19 the previous session. The currency is also in a position to post a higher close for the week. The catalysts behind the Aussie’s strength were lower Treasury yields, a weaker U.S. Dollar, strong domestic labor market data and solid economic data from China.
At 20:00 GMT, the AUD/USD is trading .7732, down 0.0019 or -0.25%.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through .7761 will signal a resumption of the uptrend. The main trend will change to down on a move through .7586.
The main range is .8007 to .7532. Its retracement zone at .7770 to .7826 is potential resistance. This zone is controlling the near-term direction of the AUD/USD.
The short-term range is .7849 to .7532. The Forex pair is currently trading on the strong side of its retracement zone at .7728 to .7690. This is giving the Aussie a slight upside bias. It’s also potential support.
The minor range is .7532 to .7761. Its 50% level at .7646 is potential support.
The direction of the AUD/USD into the close on Friday is likely to be determined by trader reaction to the short-term Fibonacci level at .7728.
A sustained move over .7728 will indicate the presence of buyers. If this move creates enough upside momentum then look for a possible late session surge into .7761 to .7770. The latter is a potential trigger point for an acceleration to the upside.
A failure to hold .7728 late in the session could trigger a break into the short-term 50% level at .7690. This is followed by the minor 50% level at .7646. Since the main trend is up, look for buyers on a pullback into this level. It represents value.
For a look at all of today’s economic events, check out our economic calendar.