AUD/USD Forex Technical Analysis – January 13, 2017 Forecast

The AUD/USD is trading higher at the mid-session. The market is posting an inside move which suggests investor indecision and impending volatility. Traders are likely to hold the market in a range until the release of today’s U.S. economic reports. Retail Sales and PPI are scheduled for 1330 GMT and Consumer Sentiment at 1500 GMT.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher for about 13 sessions. The main trend will turn up on a trade through .7524.

Today’s session begins with the AUD/USD in the window of time for a potentially bearish closing price reversal top.

The main range is .7777 to .7159. Its retracement zone is .7468 to .7541. The market is currently testing this zone. Trader reaction to this zone is likely to determine the near-term direction of the Australian Dollar.

Forecast

Based on the current price at .7494 and the early price action, the first upside target is the main top at .7524. Taking out this level will turn the main trend to up and could create enough upside momentum to challenge the main Fibonacci level at .7541 and the long-term downtrending angle at .7547.

The angle at .7547 is the trigger point for an acceleration to the upside.

The first downside target is the main 50% level at .7468. If this price fails as support then look for the selling to extend into the uptrending angle at .7419. The daily chart is wide open to the downside under this angle, so we’re going to call it a trigger point for an acceleration to the downside.

Basically, look for a sideways trade if prices hold inside .7468 and .7541. Look for an upside bias on a rally through .7547 and a downside bias if .7468 is taken out with conviction.