AUD/USD Forex Technical Analysis – October 31, 2014 Forecast

On Thursday, the AUD/USD followed through to the downside after posting a potentially bearish closing price reversal top the previous day.

The main range is .8642 to .8910. The pivot of this range is .8776. This price is controlling the short-term direction of the market. Yesterday, the market traded through this level, but quickly regained it, triggering a short-covering rally into the close.

Overcoming the uptrending angle at .8843 will be another sign of short-covering. This may create enough upside momentum to take out the reversal top at .8910. This move would turn the main trend to up and could trigger a rally into .8992 to .9021.

On the downside, a sustained move under .8776 will be bearish. This could trigger a break under the next support angle at .8740. The angle at .8692 is the last angle before the two main bottom at .8651 and .8642.

Taking out .8642 with conviction could trigger the start of a huge break into a monthly chart target at .8544.