AUD/USD Forex Technical Analysis – Reversal Up on Monthly Chart Giving Aussie Slight Upside Bias

The Australian Dollar edged higher on Friday after a steep sell-off in reaction to a stronger-than-forecast U.S. Non-Farm Payrolls report. Heightened volatility was the theme last week as the Aussie rallied as U.S. Treasury yields plunged in response to political turmoil in Italy. It retreated as tensions eased and after strong U.S. jobs data solidified a June Fed rate hike while raising the possibility of additional rate hikes later this year.

On Friday, the AUD/USD settled at .7568, up 0.003 or +0.04%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7606 will signal a resumption of the uptrend. The main trend will change to down on a move through .7476.

The minor trend is also up. A new minor top was formed at .7593.

The main range is .7812 to .7412. Its retracement zone at .7612 to .7659 is the primary upside target. This zone is also controlling the longer-term direction of the market.

The first short-term range is .7448 to .7606. Its 50% level or pivot is .7527.

The second short-term range is .7412 to .7606. Its retracement zone is .7509 to .7486. Friday’s low fell inside the 50% levels at .7527 to .7509.

Daily Swing Chart Technical Forecast

Based on Friday’s close at .7568, support is lined up at .7527, .7509, .7486 and .7476. If these levels can’t stop the selling pressure then the trend will change to down with .7448 and .7412 a pair of potential downside targets.

If the buyers continue to come in to support the rally then look for them to make a run at .7593 and .7606.

The most difficult area for buyers will be the main retracement zone at .7612 to .7659. Since the longer-term trend on the weekly and monthly charts is down, sellers are going to try to defend this zone.