AUD/USD Forex Technical Analysis – August 27, 2015 Forecast

The AUD/USD is trading higher on Thursday. The trade through yesterday’s high created a new minor bottom. This could be an indication of profit-taking or aggressive counter-trend buying. It could also be an indication that investors believe that conditions in China may be stabilizing.

The main trend is down on the daily chart. However, a new minor range has formed between .7439 and .7069. If the current upside momentum continues then look for a drive into a downtrending angle at .7199. Since the main trend is down, sellers are likely to show up on the initial test of this angle.

Overtaking .7199 will signal the presence of buyers. The daily chart also opens up to the upside over this level with the short-term 50% level at .7254 the first upside target. A sustained move through this price could trigger a further rally into the 61.8% level at .7298. This is followed by a downtrending angle at .7319.

If a rally fails to materialize today then look for a test of .7098. This is followed by .7069. The daily chart opens up to the downside under this level with .6959 a potential target.

The key price to watch today is .7199. This angle is controlling the direction of the market. Trader reaction to this angle will likely set the tone of the market over the near-term.