AUD/USD Forex Technical Analysis – Risk-On Sentiment Creating Bullish Tone

Increased demand for higher risk assets is helping to give the Australian Dollar a boost on Friday. The price action in the Aussie, U.S. Treasurys, U.S. stock futures and the USD/JPY indicates perhaps an easing of tensions of the trade relationship between the United States and China, or perhaps just aggressive end-of-the-month position-squaring.

At 0514 GMT, the AUD/USD is trading .7388, up 0.0034 or +0.47%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7326 will signal a resumption of the downtrend.

The minor trend is down. A move through .7445 will change the minor trend to up and shift momentum to the upside.

The short-term range is .7445 to .7326. Its 50% level or pivot at .7386 is controlling the price action today.

The main range is .7677 to .7326. If momentum shifts to the upside then the current rally could extend into its retracement zone at .7052 to .7543.

Daily Technical Forecast

Based on the early price action and the current price at .7385, the direction of the AUD/USD the rest of the session will be determined by trader reaction to the pivot at .7386.

A sustained move over .7386 will indicate the presence of buyers. This could trigger a move into an uptrending Gann angle at .7402. Overcoming this angle will put the Aussie in a position to continue the rally.

If the move over .7402 can generate enough upside momentum, we could see a test of the minor top at .7445. This is the trigger point for an acceleration into a resistance cluster at .7502 to .7507.

A sustained move under .7386 will signal the presence of sellers. If this move attracts enough sellers then look for a retest of a support cluster at .7337 to .7326. The daily chart opens up to the downside under .7326 with .7282 the next target.

Basically, look for an intraday downside bias to develop on a sustained move under .7386 and an intraday upside bias to develop on a sustained move over .7402.