AUD/USD Forex Technical Analysis – November 17, 2015 Forecast

The AUD/USD is rebounding after early session weakness, putting the Forex pair up for the session and in a positon to breakout to the upside. The shift in momentum is being fueled by greater demand for higher risk assets. Also underpinning the market is the Reserve Bank of Australia minutes which showed the central bank is really counting on a strong recovery by the economy.

Technically, the main trend is down according to the daily swing chart. However, today’s price action suggests that aggressive buyers may be trying to form a potentially bullish secondary higher bottom at .7071.

Based on the current price at .7116, the direction of the market is likely to be determined by trader reaction to the 50% level at .7119.

There are a number of levels forming a solid price cluster today. The first is an uptrending angle at .7115. This is followed by a short-term 50% level at .7119, a long-term downtrending angle at .7121 and a short-term downtrending angle at .7133.

Buyers will have to overtake this cluster of numbers before there will be an acceleration to the upside.

Taking out the long-term angle at .7133 could create enough upside momentum to challenge the Fibonacci level at .7143. This is followed by the main top at .7158. A trade through this level will turn the main trend to up. This could lead to a further rally into an angle at .7178.

A failure to overcome the cluster of numbers will indicate the presence of sellers. A sustained move under .7115 could create enough downside momentum to trigger an acceleration into the short-term pivot at .7086. This is followed closely by an uptrending angle at .7065.

The area between .7086 and .7065 provided support earlier in the session.

Watch the price action and read the order flow at .7119 today. Trader reaction to this level will tell us whether the bulls or the bears are in control.