AUD/USD Forex Technical Analysis – October 28, 2014 Forecast

The AUD/USD finished slightly higher on Monday, but trading remained light and volume below average. The market is walking up an uptrending Gann angle from the .8642 bottom. This angle comes in today at .8812. The close at .8801 puts the Aussie on the bearish side of this angle on the opening, giving the market an early downside bias. Bullish traders will have to overtake .8812 in order to turn the sentiment back up.

If buyers fail to overtake the angle at .8812 then look for a break back into the short-term pivot at .8774. This price level is controlling the short-term direction of the market. A failure to hold this level could trigger a sharp break into the next support angle at .8727. A failure at this angle will likely mean a break into .8685.

The angle at .8685 is the last support before the two main bottoms at .8651 and .8642.

Sustaining a move over .8812 will indicate that buyers are coming in to support the market. The daily chart indicates there is plenty of room to the upside with the main top at .8898 the next likely target. A trade through this level will turn the main trend to up on the daily chart.

The tight and narrow ranges suggests traders should prepare for the return of volatility. At this time, it looks as if the bias is to the upside because the AUD/USD is holding above a pivot at .8774 and an uptrending angle at .8812. The tone will shift to down if .8774 fails as support.