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AUD/USD Forex Technical Analysis – Inside Move Signaling Investor Indecision, Impending Volatility

The AUD/USD closed higher on Friday despite the relatively low volume. The inside move indicates investor indecision and impending volatility.

AUDUSD
Daily AUD/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7789 will indicate the selling is getting stronger. A trade through .7758 will reaffirm the downtrend.

The main trend will turn up on a move through .7988.

The main range is .7501 to .8135. Its retracement zone at .7818 to .7743 was successfully tested on February 9 at .7758 and at .7789 on February 22.

The intermediate range is .7758 to .7988. Trading below its retracement zone at .7873 to .7846 is helping to give the market a slight downside bias.

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The short-term range is .7988 to .7789. Its 50% level or pivot is .7889. It is controlling the near-term direction of the Forex pair.

AUDUSD
Daily AUDUSD (Close-Up)

Daily Technical Forecast

Based on Friday’s close at .7836, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to .7859 and .7789.

A trade through .7789 will indicate the presence of sellers. This could create the downside momentum needed to challenge a long-term uptrending Gann angle at .7766, followed closely by a main bottom at .7758 and a major Fibonacci level at .7743.

The Fib level at .7743 is a possible trigger point for an acceleration to the downside.

A trade through .7859 will signal the presence of buyers. This could trigger a labored rally with potential upside targets clustered at .7873, .7886 and a downtrending Gann angle at .7888.

The Gann angle at .7888 is the trigger point for a possible acceleration to the upside with a pair of downtrending Gann angles at .7935 and .7938 the major upside targets.

This article was originally posted on FX Empire

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