AUD/USD Forex Technical Analysis – Weekly Chart Pattern Flat Ahead of RBA Decision, GDP Figures

The AUD/USD is trading slightly lower on Monday. U.S. banks are on holiday so we expect to see limited price action. Additionally, investors are not likely to move the move the Forex pair too much ahead of Tuesday’s Reserve Bank of Australia interest rate decision and Wednesday’s quarterly GDP report.

Because of the light trade, we’re going to look at the weekly chart today.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through .8065 will signal a resumption of the uptrend. A move through .7807 will change the main trend to down.

The short-term range is .8065 to .7807. Its 50% level or pivot is .7936. The recent price action strongly indicates that reaction to this price level will determine the near-term direction of the Forex pair.

The main range is .7329 to .8065. If there is a change in trend to down then its retracement zone at .7697 to .7610 will become the primary downside target.

Forecast

Based on Friday’s close at .7966, the direction of the AUD/USD this week is likely to be determined by trader reaction to a support cluster at .7945, .7936 and .7927.

A sustained move over .7945 will indicate the presence of buyers. This could create enough upside momentum to challenge a pair of Gann angles at .8005 to .8009. Taking out this level could lead to a test of the next downtrending angle at .8035. This is the last major downtrending angle before the .8065 main top.

Taking out .8065 will signal a resumption of the uptrend with the next likely target area .8162 to .8165.

A sustained move under .7927 will signal the presence of sellers. This could trigger a break into an uptrending angle at .7867. This is followed by the main bottom at .7807.

Taking out .7807 will change the trend to down and put the AUD/USD on the path to .7697.