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AUD/USD Forex Technical Analysis – Trader Reaction to .6810 Will Set the Tone on Monday

By:
James Hyerczyk
Published: Nov 18, 2019, 08:08 UTC

Based on the early price action and the current price at .6815, the direction of the AUD/USD the rest of the session on Monday is likely to be determined by trader reaction to the downtrending Gann angle at .6810.

AUD/USD

The Australian Dollar is trading slightly lower on Monday. There has been no follow-through to the upside following Friday’s strong rebound rally, following the prior session’s steep sell-off.

The trading range is tight as most of the major players have taken to the sidelines ahead of Tuesday’s release of the Reserve Bank of Australia (RBA) monetary policy meeting minutes. Traders are hoping the minutes shed some light on the timing of the next rate cut by policymakers.

Helping to underpin prices is increasing optimism over a U.S.-China trade deal after two U.S. officials said a deal was close last week, and China confirmed over the weekend that talks have been “constructive.”

Last week, the Aussie plunged after employment data raised the chances of another RBA rate cut. However, buyers have reemerged on the hope of a trade deal.

At 07:53 GMT, the AUD/USD is trading .6815, down 0.0005 or -0.07%.

AUDUSD
Daily AUD/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through last week’s low at .6770 will signal the return of sellers. The main trend will change to up on a trade through the last main top at .6930.

The main range is .6671 to .6930. Its retracement zone at .6800 to .6770 is support. This zone stopped the selling on November 14 at .6770.

The short-term range is .6930 to .6770. Its retracement zone at .6850 to .6869 is the primary upside target and potential resistance. Since the main trend is down, sellers are likely to come in on a test of this zone.

The major resistance zone is .6877 to .6925. This zone stopped the rally at .6930 on October 31.

Daily Technical Forecast

Based on the early price action and the current price at .6815, the direction of the AUD/USD the rest of the session on Monday is likely to be determined by trader reaction to the downtrending Gann angle at .6810.

Bullish Scenario

A sustained move over .6810 will indicate the presence of buyers. This could trigger a rally into a pair of uptrending Gann angles at .6836 and .6839. Overtaking these angles could trigger a further rally into the short-term retracement zone at .6850 to .6869.

Bearish Scenario

A sustained move under .6810 will signal the presence of sellers. The first target is the 50% level at .6800. This is a potential trigger point for an acceleration to the downside with the next target the Fibonacci level at .6770, followed by an uptrending Gann angle at .6754.

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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