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AUD/USD Forex Technical Analysis – Strengthens Over .6236, Weakens Under .6097

By:
James Hyerczyk
Published: Mar 30, 2020, 09:17 UTC

Based on the early price action and the current price at .6153, the direction of the AUD/USD the rest of the session on Monday is likely to be determined by trader reaction to a pair of Gann angles at .6085 to .6070.

AUD/USD Forex Technical Analysis – Strengthens Over .6236, Weakens Under .6097

The Australian Dollar is trading marginally lower on Monday as investors continue to digest the massive amounts of monetary stimulus from the Reserve Bank of Australia (RBA) and the U.S. Federal Reserve (FED). The price action suggests investors are moving a little more money back into the U.S. Dollar for protection as coronavirus lockdowns tightened across the world and investors braced for a prolonged period of uncertainty.

At 09:01 GMT, the AUD/USD is trading .6153, down 0.0013 or -0.22%.

Traders turned a little more bearish on the Aussie early Monday after U.S. President Donald Trump, who had talked about reopening the economy for Easter, extended guidelines for social restrictions to April 30.

Daily AUD/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A move through Friday’s high at .6200 will indicate the return of buyers. The main trend will actually change up on a move through the last main top at .6685. A move through .5510 will signal a resumption of the downtrend.

The minor trend is also up. This is supporting the momentum. A trade through .5870 will change the minor trend to down.

The short-term range is .6685 to .5510. Its retracement zone at .6097 to .6236 is potential resistance. The AUD/USD is currently trading inside this range.

Daily Technical Forecast

Based on the early price action and the current price at .6153, the direction of the AUD/USD the rest of the session on Monday is likely to be determined by trader reaction to a pair of Gann angles at .6085 to .6070.

Bullish Scenario

A sustained move over .6085 and especially the 50% level at .6097 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the Fibonacci level at .6236. This is a potential trigger point for an acceleration to the upside with the next possible target a downtrending Gann angle at .6385.

Bearish Scenario

A sustained move under .6070 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with targets coming in at .5870 and an uptrending Gann angle at .5790.

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.

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