AUD/USD Forex Technical Analysis – October 15, 2014 Forecast
The AUD/USD rallied early in the session on Tuesday, but buyers couldn’t hold on to the gains and the market settled lower. The higher-high, however, made .8651 a new minor bottom.
Uptrending support angles come in at .8682 and .8662. These are the last two angles before the minor bottom at .8651 and the main bottom at .8642.
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Taking out .8642 with conviction could trigger an acceleration to the downside with the monthly 50% level at .8544 the next likely target.
Overcoming the uptrending angle at .8722 will be the first sign of strength today.
The short-term range is .8898 to .8651. The pivot price of this range is .8774. This pivot is controlling the short-term direction of the market. Overtaking it today will mean the short-covering is getting stronger.
The first target of a breakout over .8774 is an uptrending angle at .8802. A sustained move over this price is likely to trigger a move into the major downtrending angle at .8841.
The daily chart indicates there is room to the upside if .8841 is taken out. The first target is the main top at .8898. A trade through this price will turn the main trend to up on the daily chart.
The ultimate objective of any strong breakout rally is the major retracement zone at .9021 to .9111.
Look for an upside bias if .8651 holds as support, but don’t expect a rally unless .8722 is recovered. There are no major support or resistance clusters today so the trade could be tentative as traders move from level to level looking for the weak points on the chart.