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AUD/USD Forex Technical Analysis – Strengthens Over .7728, Weakens Under .7690

By:
James Hyerczyk
Published: Apr 15, 2021, 06:25 UTC

The direction of the AUD/USD on Thursday is likely to be determined by trader reaction to the short-term Fibonacci level at .7728.

AUD/USD

In this article:

The Australian Dollar is trading lower Thursday, giving back earlier gains after touching a three-week top as upbeat data suggested the Australian economy had grown strongly last quarter. Prices began to retreat on the notion, however, that a stronger labor market would bring the Reserve Bank (RBA) closer to raising interest rates.

At 05:56 GMT, the AUD/USD is trading .7719, down 0.0004 or -0.05%.

The Aussie received a boost shortly after the release of a quarterly report showing 70,700 jobs were added in March, twice the market forecast, while unemployment dropped to a one-year low at 5.6%.

Daily AUD/USD

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at .7745 will signal a resumption of the uptrend. The main trend changes to down on a move through .7586.

The main range is .8007 to .7532. Its retracement zone at .7770 to .7826 is the primary upside target. Sellers could come in on the first test of this zone. This area is also controlling the near-term direction of the AUD/USD.

The short-term range is .7849 to .7532. The AUD/USD is currently trading inside its retracement zone at .7690 to .7728.

The minor range is .7532 to .7745. Its 50% level at .7638 is potential support.

Daily Swing Chart Technical Forecast

The direction of the AUD/USD on Thursday is likely to be determined by trader reaction to the short-term Fibonacci level at .7728.

Bullish Scenario

A sustained move over .7728 will indicate the presence of buyers. Taking out the intraday high at .7745 should trigger a surge into the main retracement zone at .7770 to .7826. Look for sellers on the first test of this zone. Taking out .7826 could trigger the start of an acceleration to the upside.

Bearish Scenario

A sustained move under .7728 will signal the presence of sellers. The first downside target is .7690. Since the main trend is up, buyers are likely to come in following a test of this level.

Taking out .7690 could trigger an acceleration into the minor 50% level at .7638.

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

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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