AUD/USD Forex Technical Analysis – October 13, 2014 Forecast
The AUD/USD followed through to the downside on Friday, confirming the previous day’s closing price reversal top. The selling pressure was strong enough to take out the mid-point of the .8642 to .8897 range at .8769, putting the Forex pair in a bearish position. The close near the low of the session suggests there may be enough downside momentum to challenge the main bottom at .8642.
Taking out .8642 will reaffirm the main downtrend and make .8897 a new main top. It could also trigger an acceleration to the downside with the monthly 50% level at .8544 the next major target.
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The first minor downside target today is an uptrending angle at .8672. This is followed by the last angle before the main bottom at .8642. Holding all of these levels will indicate a buyer is coming in to support the market.
Overcoming uptrending angles at .8702 and .8762 will indicate strong short covering. Finally crossing back over the pivot at .8769 will be a strong indication the market is setting up to reverse to the upside.
The tone of the market today is likely to be determined by trader reaction to the main bottom at .8642.