AUD/USD Forex Technical Analysis – August 19, 2015 Forecast

The AUD/USD is trading higher shortly before the release of the U.S. consumer inflation report at 8:30 a.m. ET. This report is likely to trigger a volatile reaction. Later in the session, traders will get the opportunity to react to the latest Fed minutes due out at 2:00 p.m. ET.

The main trend is down on the daily swing chart. The short-term range is .7439 to .7215. Its mid-point or pivot is .7327. This pivot is controlling the short-term direction of the market.

A sustained move over .7327 will signal the presence of buyers with the first target a pair of downtrending angles at .7379 and .7387. A longer-term downtrending angle is next at .7408.

The market could accelerate to the upside over .7408 with the next major target an even longer-term downtrending angle at .7433. A 50% level at .7485 is the primary upside target.

A sustained move under .7327 will signal the presence of sellers. The first target is a support cluster at .7319 to .7315. This area was tested successfully when the market traded down to .7313.

Look for an acceleration to the downside if .7315 is taken out with conviction. The next downside target is a downtrending angle at .7265. This is the last major uptrending angle before the .7215 main bottom.

Watch the price action and read the order flow at .7327. This will tell us whether the bulls or the bears are in control.