AUD/USD Forex Technical Analysis – April 25, 2017 Forecast

The AUD/USD is under pressure early Tuesday as investors lighten up on higher-yielding assets due to renewed concerns over North Korea. Traders started to become a little nervous late Monday after the entire U.S. Senate was invited to the White House for a briefing Wednesday on the North Korean situation, amid escalating tensions over the country’s missile tests and threatening comments.

Flight-to-safety buying will drive investors out of higher risk currencies like the Australian Dollar and into safe haven assets like the Japanese Yen and gold.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7610 will change the main trend to up.

Monday’s close at .7568 makes a 50% level at .7576 the nearest resistance, followed by a pair of retracement levels at .7600 and .7611.

On the downside, the nearest support is a longer-term Fibonacci level at .7541, followed by a short-term Fibonacci level at .7525.

Forecast

Based on the Monday’s close at .7568, the direction of the AUD/USD today will be determined by trader reaction to the uptrending angle at .7563.

A sustained move over .7563 will indicate the presence of buyers. This could send the market back into .7576 and .7580.

The angle at .7580 is the trigger point for an acceleration to the upside with potential targets at .7600, .7610 and .7611.

If the AUD/USD fails to hold the angle at .7563 then look out to the downside because the nearest support is .7541. This is followed by .7525 and .7518.

Watch the price action and read the order flow at .7563 all session. Trader reaction to this angle will tell us if the buyers are still coming in to support the market, or if sellers are retaining control.