AUD/USD Forex Technical Analysis – Sellers Likely to Show Up on Test of .7343 to .7376

After hitting a multi-year low last week, the Australian Dollar rebounded with enough power to post a closing price reversal bottom on the weekly chart. The chart pattern doesn’t mean the trend is getting ready to change to up, but it does indicate that the buying may be greater than the selling at current price levels.

Last week, the AUD/USD settled at .7317, up 0.0022 or +0.30%.

Weekly Technical Analysis

The main trend is down according to the weekly swing chart. However, momentum will shift to the upside on a trade through .7320. The closing price reversal bottom will be confirmed on a move through .7320.

A trade through .7202 will negate the closing price reversal bottom and signal a resumption of the uptrend. The main trend will change to up on a move through .7484.

The minor trend is also down on the weekly chart. A trade through .7465 will change the minor trend to up.

The short-term range is .7484 to .7202. Since the main trend is down, sellers are likely to show up on a test of its retracement zone at .7343 to .7376.

Weekly Technical Forecast

Based on last week’s close at .7317 and the closing price reversal bottom, the direction of the AUD/USD this week is likely to be determined by trader reaction to last week’s high at .7320.

Taking out .7320 will confirm last week’s closing price reversal bottom. If this generates enough upside momentum then look for the rally to extend into the short-term 50% level at .7343, followed by a downtrending Gann angle at .7364 and the short-Term Fib level at .7363.

The trigger point for an acceleration to the upside is .7363. Taking out this level could drive the AUD/USD into a pair of downtrending Gann angles at .7452 and .7457. Look for sellers to show up on a test of these angles.

The inability to take out or sustain a rally over .7320 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to extend into a pair of downtrending Gann angles at .7244 and .7237. Crossing to the weak side of .7237 will indicate the selling is getting stronger. This could lead to a test of .7202.

If last week’s low at .7202 fails as support then look for the selling to extend into the December 23, 2016 main bottom at .7159.