AUD/USD Forex Technical Analysis – November 10, 2015 Forecast

The AUD/USD is posting an inside move early in the session on low volume. Yesterday was also an inside day. This type of price action indicates trader indecision. The conflict behind the oversold technical indicators and the bearish fundamentals may be behind the move. The lack of fresh economic news this week ahead of Friday’s U.S. retail sales report is also a contributing factor.

Helping to underpin the market earlier today were data on low Chinese inflation and falling lending finance figures. China’s consumer inflation rose 1.3 percent in October from a year ago. This was below the 1.5 percent estimate. The slower China inflation data leaves the door open for the People’s Bank of China to ease monetary policy further.

According to the Australian Bureau of Statistics, lending to investors fell at the fastest monthly pace in eight years in September. The fall in investment eases the pressure on the Reserve Bank to cut interest rates further, which would weaken the Australian Dollar.

Technically, the main trend is down on the daily chart. However, two days of inside moves suggests downside momentum may be slowing. It also indicates impending volatility.

Based on Monday’s close at .7046, the Aussie is trapped between a pair of uptrending angles.

On the downside, the first target is Friday’s low at .7022. The longer-term uptrending angle comes in at .7011. This is the last potential support angle before the .6936 main bottom.

The first upside target is another uptrending angle at .7086. The current range is .7223 to .7022. If there is a breakout over .7086 then its retracement zone at .7123 to .7146 becomes the primary upside target.

Unless volume picks up today, the AUD/USD is likely to spend today’s session between .7011 and .7086.