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

The AUD/USD is trading higher on Friday, shortly ahead of the U.S. opening. The price action suggests position-squaring is taking place ahead of the U.S. Durable Goods report and speeches by Fed Chair Janet Yellen and ECB President Mario Draghi.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is starting to shift to the upside. A trade through .7962 will change the main trend to up. A trade through .7866 will indicate the return of sellers. A move through .7807 will signal a resumption of the downtrend.

The main range is .7807 to .7962. Its retracement zone is .7884 to .7866. This zone provided support on Thursday.

The short-term range is .7962 to .7866. Its retracement zone at .7914 to .7925 is currently being tested. This area could become resistance.

The major resistance zone is .7936 to .7966. The major 50% level support is .7818.

Forecast

Based on the current price at .7908, the direction of the AUD/USD is likely to be determined by trader reaction to the 50% level at .7914.

A sustained move over .7914 will indicate the presence of buyers. This could lead to a labored rally with short-term targets at .7925, .7932, .7936 and .7947.

The daily chart will open up to the upside on a sustained move over .7947 with the next major target .7962.

The inability to overcome .7914 will signal the presence of sellers. The first downside target is .7902. This is followed by a potential support cluster at .7887 to .7885.

Look out to the downside if .7885 fails as support. This could trigger a steep break into .7866. This is also the trigger point for an acceleration into .7847 then .7827. The latter is the last potential support angle before the .7807 main bottom.