AUD/USD Forex Technical Analysis – Trader Reaction to .7079 Should Set Tone Today

The Australian Dollar finished sharply lower on Thursday. The Aussie was pressured early in the session by renewed tensions over U.S.-China trade negotiations and weaker-than-expected Chinese manufacturing data. Later in the session, the selling pressure increased after U.S. GDP beat expectations. This drove up U.S. Treasury yields, making the U.S. Dollar a more attractive investment.

At 22:22 GMT, the AUD/USD is trading .7095, up 0.0007 or +0.02%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7053 will signal a resumption of the downtrend. The main trend will change to up on a move through .7296.

The minor trend is also down. A trade through .7070 will reaffirm the downtrend. A trade through .7207 will change the minor trend to up. This will also shift momentum to the upside.

The main range is .7394 to .6764. Its retracement zone at .7079 to .7153 is controlling the direction of the Forex pair. On Thursday, the AUD/USD settled inside this range.

The short-term range is .6764 to .7296. Its retracement zone at .7030 to .6967 is the next downside target area.

Daily Technical Forecast

Based on Thursday’s close and the early price action, the direction of the AUD/USD on Friday is likely to be determined by trader reaction to the main 50% level at .7079.

Bullish Scenario

A sustained move over .7079 will indicate the presence of buyers. If this creates enough upside momentum then look for a drive into the main Fibonacci level at .7153. That’s all we’re looking for at this time since the sentiment is bearish.

Bearish Scenario

A sustained move under .7079 will signal the presence of sellers. This is followed closely by the minor bottom at .7070 and the main bottom at .7053.

Taking out .7053 will reaffirm the downtrend with the short-term 50% level at .7030 the next target. This is a potential trigger point for an acceleration to the downside with the next target a potential support cluster at .6969 to .6967.