AUD/USD Forex Technical Analysis – November 1, 2017 Forecast

The AUD/USD gave up early gains to finish lower on Tuesday. Position-squaring ahead of the Fed’s monetary policy announcement on Wednesday and President Trump’s Fed chair selection on Thursday. Traders may also be looking ahead to Friday’s U.S. Non-Farm Payrolls report.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7624 will signal a resumption of the downtrend.

The short-term range is .7624 to .7698. Its 50% level or pivot is .7661. This price level is controlling the short-term direction of the market. The Forex pair is currently straddling this level.

Bullish counter-trend traders are going to try to form a secondary higher bottom. Bearish traders are going to try to take out this level and make .7698 a new main top.

Daily Forecast

Based on the early trade, the direction of the AUD/USD is likely to be determined by trader reaction to the pivot at .7661.

A sustained move over .7661 will signal the presence of buyers. The first target angle comes in at .7684. Crossing to the strong side of this angle could lead to a test of .7698. This price is a potential trigger point for an acceleration to the upside with .7760 the primary upside target over the near-term.

A sustained move under .7661 will indicate the presence of sellers. The support angles come in at .7654 and .7639. The latter is the last potential support angle before the .7624 main bottom.

A failure to hold .7624 could lead to an eventual test of the July 5 main bottom at .7571.

Trader reaction to .7661 today will tell us if the buying is getting stronger or if sellers are retaking control.