AUD/USD Forex Technical Analysis – April 26, 2017 Forecast

The AUD/USD is trading sharply lower ahead of the U.S. session. Traders are reacting to a disappointing consumer inflation report. Sellers came in early in the session after first quarter inflation missed expectations. Australia’s headline inflation during the March quarter was 0.5%. This was below the forecast of 0.6%. Yearly inflation did creep back inside the Reserve Bank’s target zone of two to three percent at 2.1%, but investors were looking for 2.2%.

Technical Analysis

The main trend is down according to the daily swing chart. The downside momentum created by the early selling pressure suggests sellers will go after the next main bottom at .7473.

The major targets are a pair of 50% levels at .7468 and .7554. If they fail as support then we could be headed sharply lower with the next major target coming in at .7384.

On the upside, the retracement levels providing resistance come in at .7525 and .7541 today.

Forecast

Based on the current price at .7492 and the earlier price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the uptrending angle at .7498.

A sustained move under .7498 will indicate the selling pressure is increasing. This could trigger an acceleration to the downside with .7473 the next target. This is followed by .7468 and .7454.

A sustained move over .7498 will signal the presence of buyers. This could create enough upside momentum to challenge a resistance cluster at .7523 to .7525. This is followed by .7540 and .7541.

Watch the price action and read the order flow at .7498 all session. Trader reaction to this angle will tell us if the selling is getting stronger, or if buyers have come back to support the market.