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AUD/USD Forex Technical Analysis – October 9, 2014 Forecast

By:
James Hyerczyk
Updated: Aug 24, 2015, 23:00 UTC

After early session weakness on Wednesday, the AUD/USD soared into the close, driven by dovish comments derived from the latest U.S. Federal Reserve

Daily AUD/USD

After early session weakness on Wednesday, the AUD/USD soared into the close, driven by dovish comments derived from the latest U.S. Federal Reserve minutes. Although the minutes may not signal a change in trend in the U.S. Dollar, they certainly provide enough concern for traders to lower expectations and reduce current positions. In other words, it may be a good time to pare short positions in the AUD/USD and book some profits, following the prolonged down move in price and time.

Daily AUD/USD
Daily AUD/USD

The main trend is down on the daily chart, but Wednesday’s rally helped make .8642 a new main bottom. In the process, a new main range was formed with the main top at .9401. The retracement zone of this range at .9021 to .9111 is the main upside target. A sustained rally today should trigger a move into the next target at .8941, but once this angle is cleared, traders should have a clean shot at the retracement zone.

The downside, the first uptrending support angle comes in at .8802, followed by additional angles at .8722 and .8682.

Look for an upward bias today as long as .8802 holds as support. 

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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