AUD/USD Forex Technical Analysis – October 17, 2014 Forecast

The AUD/USD posted an inside day, lower-close on Thursday, indicating trader indecision and impending volatility once they make up their minds which way they want to take the Forex pair.

Support angles are scattered today at .8792, .8692 and .8667. These are the last angles defending the two bottoms at .8651 and .8642. If these two bottoms are taken out with conviction then look for a sharp break into the major 50% level at .8544.

Holding the bottoms and the angles will indicate building strength, but don’t look for increased momentum until the long-term angle is taken out at .8801. This angle has stopped two rallies over the past six sessions so taking it out with conviction will be bullish.

The first upside target is the main top at .8898. Taking out this price will turn the main trend to up on the daily chart.

The main range is .9401 to .8642. This makes its retracement zone at .9021 to .9111 the primary upside target.