AUD/USD Forex Technical Analysis – November 2, 2015 Forecast

The AUD/USD is trading higher early in the session. The main trend is up according to the daily swing chart, however, after several weeks of downside momentum, the chart pattern suggests that momentum may be shifting back to the upside. Profit-taking or short-covering ahead of this week’s RBA meeting and U.S. Non-Farm Payrolls report may be the catalysts behind the move.

The main range is .6936 to .7381. Its retracement zone is .7157 to .7104. The Forex pair is currently trading inside this zone. Trader reaction to this area could set the tone for the week.

A sustained move over the 50% level at .7157 will indicate the presence of buyers. The next upside target is a long-term uptrending angle at .7176. The daily chart opens up to the upside over this angle.

The new short-term range is .7381 to .7067. A sustained move over .7176 could create enough upside momentum to fuel a rally into the short-term retracement zone at .7224 to .7261.

Based on Friday’s close at .7134, the first downside target is the main Fibonacci level at .7104. Taking out this level will indicate the presence of sellers. This could trigger a break into a cluster of numbers at .7081, .7067 and .7056.

Watch the price action and read the order flow at .7157 and .7104 today. Trader reaction to this levels will determine the direction of the market and should tell us whether the bulls or the bears are in control.

Look for a bullish tone to develop on a sustained move over .7157 and a bearish tone to develop on a sustained move under .7104.