AUD/USD Forex Technical Analysis – January 19, 2017 Forecast

The AUD/USD is trading higher and at its highest level since November 15. Traders are reacting to Australian labor market data. Earlier in the session, it was reported that the Employment Change report showed the economy added 13.5K jobs in December. This was above the 10.2k estimate. The Unemployment Rate from 5.7% to 5.8%.

Technical Analysis

The main trend is up according to the daily swing chart. The next major upside target on the swing chart is the November 8 main top at .7777. Breaking below the previous main top at .7524 will be a sign of increased selling pressure but not necessarily mean the trend is turning lower.

The main range is .7777 to .7159. The retracement zone is .7468 to .7541. The market is currently testing this zone. Closing above the Fib level at .7541 will give the market a strong upside bias.

The new short-term range is .7159 to .7574. Its retracement zone at .7366 to .7317 is the primary downside target.

Forecast

Based on the current price at .7561 and the early price action, the nearest support is the main Fibonacci level at .7541, a downtrending angle at .7527 and a major uptrending angle at .7499.

The angle at .7499 is most important because it has been guiding the market higher since the December 23 main bottom at .7159.

Momentum could start to shift lower if .7499 fails. The next target is the main 50% level at .7468.

The daily chart opens up to the downside under .7468 so don’t be surprised by an acceleration to the downside with the next major target .7366.

On the upside, the AUD/USD has a clear shot at a resistance angle at .7652. This is the last potential resistance angle before the .7777 main top.