Advertisement
Advertisement

AUD/USD Forex Technical Analysis – Strengthens on Sustained Move Over Weekly Gann Angle at .7217

By:
James Hyerczyk
Published: Nov 14, 2018, 03:54 UTC

Based on this week’s price action, the direction of the AUD/USD the rest of the week is likely to be determined by trader reaction to the downtrending Gann angle at .7217.

AUD/USD

The Australian Dollar is trading flat at mid-week, recovering from Monday’s weakness on the hopes for an end to the trade dispute between the United States and China. The idea was supported on Tuesday after White House economic advisor Larry Kudlow confirmed reports of renewed talks between the U.S. and China on trade.

According to The Wall Street Journal, U.S. Treasury Secretary Steven Mnuchin and Chinese Vice-Premier Liu He had resumed trade talks. Additionally, President Donald Trump and Chinese President Xi Jinping are scheduled to meet at the G-20 summit in Buenos Aires, Argentina on November 30 –December 1.

On Tuesday, the AUD/USD closed at .7219, up 0.0045 or +0.63%. As of Tuesday’s close, the Forex pair was down 0.0010 or -0.13% for the week.

AUDUSD
Weekly AUD/USD

Weekly Technical Analysis

The main trend is down according to the weekly swing chart. A trade through .7314 will change the main trend to up. A move through .7020 will signal a resumption of the downtrend.

The main range is .7677 to .7020. Its retracement zone at .7349 to .7426 is the primary upside target and resistance zone.

The intermediate range is .7484 to .7020. Its retracement zone at .7252 to .7307 is resistance. This zone stopped the rally last week at .7302.

The short-term range is .7020 to .7302. Its retracement zone at .7161 to .7128 is potential support. Aggressive counter-trend buyers could step in on a test of this zone in an effort to form a secondary higher bottom.

Weekly Technical Forecast

Based on this week’s price action, the direction of the AUD/USD the rest of the week is likely to be determined by trader reaction to the downtrending Gann angle at .7217.

Bullish Scenario

A sustained move over .7217 will indicate the presence of buyers. If this move generates enough upside momentum then look for the rally to possibly extend into the 50% level at .7252, followed by a minor top at .7302, a Fibonacci level at .7307 and a main top at .7314.

The trend will change to up on a move over .7314 with the main retracement zone at .7349 to .7426 the next likely upside target.

Bearish Scenario

A sustained move under .7217 will signal the presence of sellers. This could drive the Aussie into the short-term 50% level at .7161, followed by an uptrending Gann angle at .7140 and a short-term Fib at .7128.

The weekly chart starts to open up to the downside under .7128 with the next target angles coming in at .7080 and .7050. The latter is the last potential support angle before the .7020 main bottom.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement