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AUD/USD Forex Technical Analysis – October 23, 2014 Forecast

By:
James Hyerczyk
Updated: Aug 25, 2015, 02:00 UTC

Despite trading on the bullish side of a long-term downtrending angle from the .9401 for the second consecutive day, the AUD/USD failed to attract any

Daily AUD/USD

Despite trading on the bullish side of a long-term downtrending angle from the .9401 for the second consecutive day, the AUD/USD failed to attract any buyers on Wednesday, leading to a slightly lower close.

Traders looked a little indecisive, judging from the way the market straddled an uptrending angle and a pivot. This type of sideways trade usually leads to volatility, but the direction hasn’t been decided by traders yet. They are waiting for more information regarding the Australian economy as well as news about China’s growth and the U.S. Federal Reserve’s plan to raise interest rates in 2015.

Daily AUD/USD
Daily AUD/USD

Wednesday’s close has the AUD/USD trading on the strong side of a downtrending angle at .8721 today. However, the market is trading on the weak side of an uptrending angle at .8782 while straddling a short-term pivot at .87745.

The tone of the market today will be determined by trader reaction to the pivot at .87745. This 50% level is controlling the direction of the market.

Holding the pivot and overtaking the uptrending angle at .8782 should give the market a bullish tone. The first upside objective of a rally is .8922. In order to get there, traders will have to turn the main trend to up by taking out the last swing top at .8898.

If .87745 fails as support then look for a break into the next support angles at .8712 and .8677. These are the last support angles before the two main bottoms at .8651 and .8642. If .8642 fails to hold then look for a sharp break into the major monthly chart 50% level at .6008.

Keep an eye on the order flow and price action at .87745. This should tell you which way traders want to take the market. Also watch keep watching for the return of volatility. The market is setting up for a big move. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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