AUD/USD Forex Technical Analysis – Strengthens Over 7605, Weakens Under .7587

The Australian Dollar fell on Friday after the benchmark 10-year Treasury yield rose on Friday after the U.S. March producer price index showed a larger-than-expected increase.

The U.S. March PPI data showed a rise of 1.0%, compared with a projected rise of 0.4% from economists surveyed by Dow Jones. The majority of the increase came from a jump in prices for final demand goods, the U.S. Bureau of Labor Statistics.

On Friday, the AUD/USD settled at .7619, down 0.0035 or -0.46%.

Reuters also reported on Friday that the Aussie Dollar was pressured by worries about a slowdown in Australia’s coronavirus vaccine rollout after the imposition of age-related restrictions on the use of Astra Zeneca shots.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7677 will reaffirm the uptrend. The main trend will change to down on a move through .7532.

The minor range is .7532 to .7677. Its retracement zone at .7604 to .7587 is potential support.

The short-term range is .7849 to .7532. Its retracement zone at .7691 to .7729 is potential resistance.

The main range is .8007 to .7532. If the main trend changes to up then its retracement zone at .7770 to .7826 is the primary upside target zone.

Daily Swing Chart Technical Forecast

The direction of the AUD/USD early Monday is likely to be determined by trader reaction to .7604 to .7587.

Bullish Scenario

A sustained move over .7605 will indicate the presence of buyers. If this can create enough upside momentum then look for the buying to possibly extend into .7677. Taking out this level will reaffirm the uptrend with .7691 the next likely target. This is a potential trigger point for an acceleration to the upside with .7729 the next target price.

Bearish Scenario

A sustained move under .7587 will signal the presence of sellers. This could trigger an acceleration to the downside with .7532 the next potential downside target.

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