AUD/USD Forex Technical Analysis – Weakness Under .7678 with .7592-.7579 Next Potential Downside TargetsThe early price action and rejection near .7678 suggests another potentially bearish closing price reversal top may be forming.
The Australian Dollar is trading lower late in the session on Friday after giving back earlier gains. The Aussie turned lower after U.S. stocks fell sharply as heightened speculative trading by retail investors continue to unnerve the market.
At 18:52 GMT, the AUD/USD is trading .7646, down 0.0032 or -0.42%.
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Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through .7592 will signal resumption of the downtrend. The main trend will change to up on a move through .7764.
The minor range is .7764 to .7592. Its 50% level at .7678 was straddled earlier today and is now resistance.
The short-term range is .7739 to .7820. Its retracement zone at .7579 to .7523 is the next downside target.
The main range is .6991 to .7820. Its retracement zone at .7405 to .7308 is controlling the near-term direction of the Aussie.
Daily Swing Chart Technical Forecast
The early price action and rejection near .7678 suggests another potentially bearish closing price reversal top may be forming.
A sustained move under .7678 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into .7592, followed by .7579.
Overcoming and sustaining a rally over .7678 will signal the return of buyers. If this move is able to generate enough upside momentum then buyers could make a run at the swing top at .7764.
Taking out .7764 will change the main trend to up. This will also break the nearly month-long pattern of lower top, signaling a shift in investor sentiment.
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