Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk

The Australian Dollar is edging higher on Friday as the U.S. Dollar hovers just below its recent two-month high. A slight increase in demand for risk is helping to boost the Aussie with some of those gains fueled by hopes that U.S. fiscal stimulus talks would resume.

Although the Australian Dollar is higher on Friday, it’s still on track to post its worst week against the dollar since March. Most of those loses are being attributed to expectations of a rate cut by the Reserve Bank of Australia (RBA) at its October 6 meeting. Policymakers are expected to trim its benchmark rate from 0.25 percent to 0.10%.

At 08:40 GMT, the AUD/USD is trading .7071, up 0.0025 or +0.35%.


Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7016 will reaffirm the downtrend. The main trend will change to up on a trade through .7345. This is highly unlikely but after seven days down, there is room for a counter-trend retracement.

The minor trend is also down. A new minor bottom was formed at .7016. Taking out this level will mean the selling pressure is increasing.

The short-term range is .6777 to .7414. The AUD/USD is currently straddling its retracement zone at .7096 to .7020. Trader reaction to this zone is likely to determine the near-term direction of the AUD/USD.

The new minor range is .7345 to .7016. Its 50% level at .7181 is a potential upside target.


Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the AUD/USD on Friday is likely to be determined by trader reaction to the short-term 50% level at .7096.

Bullish Scenario

A sustained move over .7096 will indicate the presence of buyers. If this move creates enough upside momentum then we could see an eventual counter-trend rally into the minor 50% level at .7181.

Bearish Scenario

The inability to overcome .7096 will be the first sign of weakness. Taking out the Fib level at .7020 will signal the presence of sellers. A move through .7016 will signal a resumption of the downtrend. This could also trigger an acceleration to the downside since the daily chart indicates the nearest support area is .6833 to .6777.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.