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AUD/USD Forex Technical Analysis – Trader Reaction to .7664 Pivot Sets the Short-Term Tone

By:
James Hyerczyk
Published: Feb 4, 2021, 08:07 UTC

The Aussie is currently trading between a pair of 50% levels at .7579 and .7664. Holding inside this zone will indicate investor indecision.

AUD/USD

In this article:

The Australian Dollar is edging higher on Thursday, supported by hopes for U.S. stimulus. The Reserve Bank of Australia will update its economic forecasts on Friday, which could determine whether the Aussie continues to rise.

The Aussie is also being underpinned as rising stock markets spoke of positive global risk sentiment, while higher bond yields at home gave the currencies an edge over their U.S. counterpart.

At 07:39 GMT, the AUD/USD is trading .7630, up 0.0009 or +0.12%.

Australian yields have moved higher even as the Reserve Bank of Australia (RBA) extended its bond buying program by another A$100 billion ($76.5 billion) and predicted cash rates would stay at 0.1% until at least 2024.

Daily AUD/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7564 will signal a resumption of the downtrend. The main trend will change to up on a move through .7764.

The main retracement zone is .7579 to .7523. This zone stopped the selling on February 2 at .7564.

The minor range is .7764 to .7564. Its 50% level at .7664 is the first upside target. Since the main trend is down, sellers could come in on the first test of this level.

The short-term range is .7820 to .7564. Its retracement zone at .7692 to .7722 is the primary upside target zone.

Daily Swing Chart Technical Forecast

The Aussie is currently trading between a pair of 50% levels at .7579 and .7664. Holding inside this zone will indicate investor indecision.

Since the main trend is down, sellers could come in on the first test of .7664. Overcoming it, however, will indicate the buying is getting stronger. This could extend the rally into .7692 to .7722, where once again, it could run into resistance.

The nearest downside support zone is .7579 to .7523. Aggressive counter-trend buyers could come in a second time, following a test of this area. However, it’s also the trigger point for a potential acceleration to the downside.

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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