AUD/USD Forex Technical Analysis – Strong Downside Momentum Targets .7462 Main Bottom

According to the Australian Bureau of Statistics, Australia’s trade surplus came in at A$7.529 versus a forecast of A$9.616.

At 07:17 GMT, the AUD/USD is trading .7548, down 0.0047 or -0.61%.

The balance of goods and services was a surplus of A$7.529 billion in February, a decrease of A$2.087 billion on the surplus in January.

Exports were down 1.0 percent on month to A$38.926 billion after climbing 6.0 percent in January, while imports gained 5.0 percent on month to A$31.398 billion after sinking 2.0 percent in the previous month.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier today when sellers took out the previous main bottom at .7563. The new main top is .7664. Taking out this level will change the main trend to up.

Daily Swing Chart Technical Forecast

The direction of the AUD/USD on Thursday is likely to be determined by trader reaction to .7595.

Bearish Scenario

A sustained move under .7595 will indicate the presence of sellers. If this move is able to generate enough downside momentum then look for the market to possibly accelerate into the December 21, 2020 main bottom at .7462.

Bullish Scenario

A sustained move over .7595 will signal the presence of buyers. This will also put the AUD/USD in a position to post a potentially bullish closing price reversal bottom. If confirmed this could trigger the start of a 2 to 3 day counter-trend rally.

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