AUD/USD Forex Technical Analysis – November 20, 2017 Forecast

The AUD/USD is trading lower during the U.S. session. It is also trading inside Friday’s range which suggests investor indecision and impending volatility. Volume and volatility are below average.

This is a holiday-shortened week so the price action may be limited due to the absence of a few of the major players. Trading could also be limited due to Tuesday’s release of the latest Reserve Bank of Australia monetary policy minutes. On Wednesday, the Fed will release the minutes from its last monetary policy meeting.

We may be ripe for a short-covering rally due to oversold conditions. However, since the fundamentals are bearish, this may create another selling opportunity.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, today’s session begins with the AUD/USD in the window of time for a potentially bullish closing price reversal bottom.

Taking out Friday’s low will signal a resumption of the downtrend. This should lead to a quick test of the June 14 main bottom at .7535. This is a potential trigger point for an acceleration to the downside with the June 2 bottom at .7372 the next major downside target.

The new range is .7729 to .7535. If there is a short-covering rally then its retracement zone at .7632 to .7655 will become the primary upside target. Look for sellers to re-emerge on a test of this area.

Daily Technical Forecast

Based on the current price at .7554 and the inside move, the first downside target is .7535. This is followed closely by .7532 and a long-term uptrending angle at .7523.

The daily chart begins to open up to the downside under .7523 with the next target a downtrending angle at .7489. Crossing to the weak side of this angle will indicate the selling is getting stronger with the next target angle coming in at .7448.

On the upside, the first target angle comes in at .7609. Since the trend is down, look for sellers to show up on a test of this angle.

Overtaking .7609 could trigger a surge into .7632 to .7655. This test of this retracement zone will offer another shorting opportunity.