AUD/USD Forex Technical Analysis – September 8, 2017 Forecast

The AUD/USD put in a strong performance on Thursday, settling at its highest level since May 15, 2015. The upside momentum by the move has also put the Forex pair in a position to challenge the July 27 main top at .8065. This is a potential trigger point for an acceleration to the upside.

Holding above the psychological .8000 level may get the Reserve Bank Revved up enough to turn the dial further toward a tightening bias.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through .8065 will indicate the buying is getting stronger. This could trigger the start of an acceleration to the upside with the next targets the May 4, 2015 main top at .8162 and the major long-term 50% level at .8165.

Forecast

Based on the current price at .8056 (0109 GMT) and the earlier price action, the direction of the AUD/USD is likely to be determined by trader reaction to the July 27, 2017 top at .8065.

A sustained move over .8065 will indicate the presence of buyers. Holding above this level will mean buyers are defending the breakout level.

The daily chart indicates there is no major resistance until .8162 and .8165. Since there is no resistance between .8065 and .8162, the only way to stop the rally will be with a chart pattern. The best pattern to watch for on an intraday or daily basis is the closing price reversal top. This higher-high, lower-close chart pattern will not mean the trend is getting ready to turn lower, but it will mean that the selling is greater than the buying at current price levels.

The nearest support is a cluster of Gann angles at .7991, .7987 and .7976.