AUD/USD Forex Technical Analysis – Straddling .7109 Pivot Ahead of RBA Minutes

The Australian Dollar is trading lower late in the session on Monday, but well off its lows as traders square positions ahead of the release of Tuesday’s Reserve Bank of Australia (RBA) Monetary Policy Meeting Minutes at 0:30 GMT.

The Aussie struggled early in the session on fears further curbs could be imposed in Europe to contain the Omicron coronavirus variant. The currency, which is also seen as a liquid proxy for risk appetite was also pressured by a steep sell-off in global equity markets.

At 20:05 GMT, the AUD/USD is trading .7112, down 0.0014 or -0.20%. The Invesco CurrencyShares Australian Dollar Trust ETF (FXA) is at $70.59, down $0.11 or -0.16%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7090 changed the main trend to down earlier in the session. A move through .7224 will change the main trend to up.

The short-term range is .6993 to .7224. The AUD/USD is currently straddling its pivot at .7109.

Intermediate 50% resistance is a pair of 50% levels at .7182 and .7212.

The main retracement zone resistance is .7275 to .7341.

Daily Swing Chart Technical Forecast

The direction of the AUD/USD into the close on Monday and early Tuesday will be determined by trader reaction to .7109.

Bullish Scenario

A sustained move over .7109 will indicate the presence of buyers. If this is able to generate enough upside momentum, we could see a quick rally into a minor pivot at .7154, followed by .7182.

The key area to overcome for the bulls is .7212 to .7224. The latter is the trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under .7108 will indicate the selling pressure is getting stronger. Taking out the intraday low at .7082 could trigger an acceleration to the downside with the next major target a support cluster at .6993 – .6991.