AUD/USD Forex Technical Analysis – Weakens Under .6864, Strengthens Over .6900

Based on the early price action, the direction of the AUD/USD on Thursday is likely to be determined by trader reaction to the minor bottom at .6864.
James Hyerczyk
AUD/USD

The Australian Dollar is drifting lower on Thursday as lingering U.S.-China trade fears continued to weigh on investor sentiment. Investors are also fearing heightened volatility and a “risk-off” trading session due to Brexit concerns, the start of European parliamentary elections and the release of key manufacturing and services data from the Euro Zone.

At 06:07 GMT, the AUD/USD is trading .6875, down 0.0006 or -0.08%.

Daily AUD/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .6864 will signal a resumption of the downtrend. The main trend will change to up on a move through .7069. This is highly unlikely to occur at this time, but there is always the possibility of a closing price reversal top leading to a short-lived counter-trend rally.

The minor trend is also down. A move through .6935 will change the minor trend to up. This will also shift momentum to the upside.

The nearest retracement zone resistance is the Fibonacci level at .6967, followed by the 50% level at .7030.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the AUD/USD on Thursday is likely to be determined by trader reaction to the minor bottom at .6864.

Bearish Scenario

A sustained move under .6864 will indicate the presence of sellers. If this move creates enough downside momentum then look for an eventual test of the January 3 bottom at .6764.

Bullish Scenario

Holding above .6864 will signal the presence of buyers. The first target is a minor pivot at .6900. Sellers could defend this area on the first test. Overcoming it, however, will indicate the counter buying is getting stronger. This could trigger a further rally into the minor top at .6935. Taking out this level on rising volume could drive the AUD/USD into the Fibonacci level at .6967.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US