AUD/USD Forex Technical Analysis – March 22, 2017 Forecast

The AUD/USD is trading lower early Wednesday. The Forex pair is being pressured by heightened risk aversion, fueled by concerns that reforms previously announced by U.S. President Donald Trump are stalling, forcing investors to reevaluate their positions in risk assets like stocks and the Australian Dollar.

Technical Analysis

The main trend is up according to the daily swing chart, but yesterday’s closing price reversal top indicates a shift in momentum and a possible change in investor sentiment. The chart pattern was confirmed earlier today when the market crossed yesterday’s low at .7691.

The short-term range is .7490 to .7749. Its retracement zone at .7619 to .7589 is the primary downside target. Since the main trend is up according to the daily swing chart, buyers are likely to come in on a test of this zone.

A trade through .7449 will negate the closing price reversal top and trigger a resumption of the uptrend.

Forecast

Based on the current price at .7670, the direction of the AUD/USD is likely to be determined by trader reaction to the uptrending angle at .7670.

A sustained move over .7670 will indicate the presence of buyers. This could generate enough upside momentum to challenge a series of downtrending angles at .7709, .7729 and .7739. The latter is the last potential resistance angle before the .7749 main top.

A sustained move under .7670 will signal the presence of sellers. The daily chart is wide open to the downside with .7619 the first downside target. This is followed by a Fibonacci level at .7588 and another uptrending angle at .7580.

Watch the price action and read the order flow at .7670 today. Trader reaction to this angle will tell us if the selling pressure is increasing or if the buyers have returned.