Yahoo Finance AUD/USD Forex Technical Analysis – January 18, 2019 Forecast
The Australian Dollar is trading slightly better early Friday after spiking to the upside the previous session in response to a series of news articles speculating that the Trump administration is considering a reduction in U.S. tariffs on Chinese imports. According to The Wall Street Journal, U.S. officials are debating ratcheting back tariffs on Chinese imports. However, later in the session, the U.S. Treasury refuted the WSJ claims.
At 0200 GMT, the AUD/USD is trading .7202, up 0.0009 or +0.12%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through .7236 will change the main trend to down. A move through .7146 will signal a resumption of the downtrend.
The minor trend is also down. A move through .7226 will change the minor trend to up. This will also shift momentum to the upside.
The main range is .7394 to .6764. Its retracement zone at .7153 to .7079 is controlling the near-term direction of the Forex pair. Holding above this zone is helping to generate a slight upside bias.
Daily Technical Forecast
Based on the early price action, the direction of the AUD/USD on Friday is likely to be determined by trader reaction to the steep uptrending Gann angle at .7204.
Bullish Scenario
Overtaking and sustaining a rally over .7204 will indicate the presence of buyers. The first upside target is the minor top at .7226, this is followed by the downtrending Gann angle at .7234 and the main top at .7236.
Taking out .7236 will change the main trend to up, setting up a test of the next main top at .7247. This is the trigger point for a potential acceleration to the upside with the next target angle coming in at .7314.
Bearish Scenario
A sustained move under .7204 will signal the presence of sellers. If this generates enough downside momentum then look for the selling to extend into the Fibonacci level at .7153, followed by the minor bottom at .7146.
The minor bottom at .7146 is a potential trigger point for an acceleration to the downside with the next major target the 50% level at .7079.
This article was originally posted on FX Empire
