AUD/USD Forex Technical Analysis – Watch the Price Action and Order Flow at .7539

After trading in a tight range for four sessions, the AUD/USD broke down but still remained inside the wide range from June 14. The chart pattern suggests the Forex pair still has room to the downside. Traders are still dealing with a number of retracement levels that are holding it in a range.

Technical Analysis

The main trend is up according to the daily swing chart, but momentum is starting to turn to the downside. The AUD/USD is far from turning the main trend to down, but it is in a position to complete a normal 50% to 61.8% retracement.

At the close, the resistance is a pair of Fibonacci levels at .7589 and .7606.

The support is a series of retracement levels at .7553, .7545 and .7539. This area stopped the selling on Wednesday.

The short-term range is .7372 to .7635. Its retracement zone at .7504 to .7472 is the primary downside target.

Forecast

Looking ahead to Thursday, the key level to watch is the long-term 50% level at .7539.

Holding above .7539 will indicate the presence of buyers. If the buying is strong enough, we could see a surge into .7589 to .7606.

If .7539 fails as support then look out to the downside. The first major target is a support cluster at .7504 to .7502. We could see a technical bounce on the first test of this cluster. If it fails then look for another acceleration into .7472.

Watch the price action and read the order flow at .7539 early Thursday. This should tell us if the selling is getting stronger, or if buyers are stepping in.