AUD/USD Forex Technical Analysis – October 14, 2014 Forecast
The AUD/USD dropped early in the session on Monday, but buyers came in at .8651, slightly in front of the main bottom at .8642. The support was strong enough to trigger a reversal to the upside into the close. The upside momentum into the close may have been strong enough to fuel a follow-through rally early in the session on Tuesday.
From the bottom up, support comes in at .8642, .8651, .8660, .8677 and .8712.
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The key uptrending angle to watch is at .8782. Crossing to the bullish side of this angle will put the market in a strong position. The daily chart indicates there is room to the upside with the next target a long-term downtrending angle from the .9401 top at .8861.
Taking out .8898 will turn the main trend to up on the daily chart. This could trigger a surge into the steep uptrending angle at .8922. This is another potential acceleration point according to the daily chart. A sustained move over .8922 could trigger an eventual rally into the major retracement zone at .9021 to .9111.
The short-term range is .8642 to .8898. Its pivot at .8770 is controlling the short-term direction of the market. Overtaking this level then the angle at .8782 will be the earliest signs of strength.
If the rally fails and the sellers come back in then look for them to go after yesterday’s low at .8651 then the October 3 main bottom at .8642. If this price fails there could be a steep drop-off into the monthly 50% level at .8544.
The tone of the day will be determined by trader reaction to the .8770 to .8772 area. Overtaking this area will be bullish. A failure here will be bearish. Read the order flow when this area is being tested.