Advertisement
Advertisement

AUD/USD Forex Technical Analysis – October 30, 2014 Forecast

By:
James Hyerczyk
Updated: Aug 25, 2015, 07:00 UTC

The AUD/USD fell sharply on Wednesday, posting a potentially bearish closing price reversal top. The catalyst for the move was the slightly more hawkish

Daily AUD/USD

The AUD/USD fell sharply on Wednesday, posting a potentially bearish closing price reversal top. The catalyst for the move was the slightly more hawkish tone in the U.S. Federal Open Market Committee statement.

In its statement released at 2:00 pm EDT on Wednesday, Fed policymakers implied the central bank was moving toward a tighter monetary policy more quickly than its peers at the Bank of England and the European Central Bank.

The Fed also announced the end to its monthly bond-buying at the end of this month. In addition, it said in its statement that interest rates could rise sooner or later, depending on how the economy performs. The central bank also dropped the word “significant” in describing underutilization of the labor market. This serves as a sign that it has turned more upbeat on the jobs market.

Daily AUD/USD
Daily AUD/USD

Technically, the closing price reversal top chart pattern may have created enough downside momentum to fuel further selling pressure today. The main range is .8642 to .8910. Its mid-point and primary target of the chart pattern at .8770 has already been reached, setting up the Aussie for more selling today.

The next targets are uptrending angles at .8737 and .8690. These are the last support points before the main bottoms at .8651 and .8642. Taking out these levels will resume the downtrend and could put significant pressure on the market with .8544 the next potential support level.

On the upside, overcoming .8832 may indicate short-covering while taking out .8910 will negate the bearish chart pattern and trigger a potential rally into .8898. The trend will change to up on a move through this level.

The tone of the market today will be determined by trader reaction to .8770. 

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.

Did you find this article useful?

Advertisement