AUD/USD Forex Technical Analysis – Watch for Two-Sided Trade; Strengthens Over .7397, Weakens under .7379

The Australian Dollar is down marginally in the Asia session as investors await the release of the U.S. Non-Farm Payrolls report at 12:30 GMT. Some speculative buyers are creeping into the U.S. in the hopes that strong numbers could make the case for faster U.S. policy tightening.

Forecasts for jobs created last month vary widely, from about 350,000 to 1.6 million, but the consensus figure is 870,000 and traders think a number that size or larger would lift the dollar while something below 650,000 might hurt it.

At 06:55 GMT, the AUD/USD is trading .7394, down 0.0008 or -0.11%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7427 will signal a resumption of the uptrend. A move through .7329 will change the main trend to down.

The AUD/USD is currently trading inside a long-term retracement zone at .7499 to .7379. The latter provided support earlier today.

The minor range is .7290 to .7427. Its retracement zone at .7358 to .7342 is potential support.

The short-term range is .7503 to .7290. Its retracement zone at .7397 to .7422 is potential resistance and the upper level is a potential trigger point for an acceleration to the upside.

Daily Swing Chart Technical Forecast

The direction of the AUD/USD on Friday is likely to be determined by trader reaction to .7397 and .7379. Holding in between these levels will indicate a neutral setting.

Bullish Scenario

A sustained move over .7397 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into .7422, followed closely by .7427.

Taking out .7427 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the longer-term 50% level at .7499 the next major target over the near-term.

Bearish Scenario

A sustained move under .7379 will signal the presence of sellers. This could lead to a labored sell-off with potential downside targets coming in at .7358, .7342 and .7329.

Taking out .7329 will change the main trend to down and could attract some strong selling pressure.

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