AUD/USD Forex Technical Analysis – Getting Close to Changing Trend to Down

The AUD/USD is trading flat after recovering from an attempt to drive the Forex pair through last week’s low at .7891. The market spiked to the downside after the release of a report that showed U.S. job openings surged to a record high in June. The news drove up U.S. Treasury yields which made the U.S. Dollar a more attractive investment.

Earlier in the session, the Aussie was capped by weaker-than-expected Chinese trade data. Chinese imports and exports both fell well short of forecasts last month, but this didn’t bother copper traders because they are being driven by upside technical momentum. Additionally, the overall trade was still a healthy 8.8 percent although this was the slowest pace this year.

According to the Bureau of Labor Statistics, the number of openings was at 6.2 million on the last business day of the month, a record high. This represents an increase from 5.7 million on the last business day of May.

Swing Chart Analysis

The main trend is up according to the daily swing chart. However, momentum has been down since the formation of the closing price reversal top at .8065 on July 27.

A trade through .7874 will change the main trend to down.

The short-term range is .7786 to .8065. Its retracement zone at .7925 to .7893 is currently acting like support. Crossing to the weak side of this zone will put the AUD/USD in a bearish position.

The main range is .7571 to .8065. If the trend changes to down then its retracement zone at .7818 to .7760 will become the primary downside target.

Gann Angle Analysis

The AUD/USD is currently straddling a downtrending Gann angle at .7905. Trader reaction to this angle will determine the direction of the Forex pair into the close.

Holding above it will indicate buyers are coming in to defend the .7874 main bottom.

Breaking below it will signal the return of sellers and put the AUD/USD in a weak position on Wednesday’s opening.