AUD/USD Forex Technical Analysis – May 26, 2016 Forecast

The AUD/USD is trading higher while posting a massive reversal to the upside after early session weakness. Buyers came in at .7158 in defense of the .7145 main bottom.

The main range is down according to the daily swing chart. The trend will turn higher on a trade through the .7259 main top. The current upside momentum suggests traders are going to go after that top.

Based on the current price at .7221, the next upside target is the downtrending angle at .7229. Taking out this angle could create enough upside momentum to challenge the next resistance angle at .7244. This is the last potential resistance angle before the .7259 main top.

Taking out .7259 will not only change the main trend to up, but it could be a sign of a shift in investor sentiment with the main 50% level at .7330 the next major target.

The inability to overcome the angle at .7229 will indicate that sellers are coming in to stop the rally. This could trigger a retracement into the major Fibonacci level at .7211 and the short-term pivot at .7202. This is followed closely by a short-term uptrending angle at .7185.

The market expands to the downside under .7185 with the next targets coming in at .7165, .7155 and .7150. The latter is the last potential support angle before the .7145 main bottom.

Look for the upside bias to continue today on a sustained move over .7229. A downside bias could develop under the main Fib level at .7211.