The Australian Dollar is trading flat early Monday. There are no major reports scheduled in Australia and the United States so the direction of global bond yields and demand for risky assets are likely to drive the price action. Of course, we should always be prepared for any surprise news regarding U.S.-China trade relations. Volume and volatility could be light ahead of Tuesday’s release of the Reserve Bank of Australia Monetary Policy minutes.
At 03:45 GMT, the AUD/USD is trading .6780, down 0.0023 or -0.04%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through .6677 will signal a resumption of the downtrend. The main trend will change to up on a move through .7082. This is highly unlikely, but there is room to complete a normal 50% to 61.8% retracement.
The minor trend is also down. A trade through .6821 will change the minor trend to up. This will also shift momentum to the upside.
The minor range is .6677 to .6821. Its 50% level or pivot at .6749 is support. This level is controlling the short-term direction of the Forex pair.
The main range is .7082 to .6677. Its retracement zone at .6880 to .6927 is the primary upside target.
Daily Technical Forecast
The price action suggests traders have a limited bias early in the session. However, holding above the pivot at .6740 suggests a support base may be forming.
A sustained move over .6740 will indicate the presence of buyers. Holding above the uptrending Gann angle at .6757 will indicate the buying is getting stronger. If this is able to create enough upside momentum then look for a drive into the minor top at .6821, followed by the uptrending Gann angle at .6837.
Overcoming .6837 will put the AUD/USD in a strong position to extend the rally into a downtrending Gann angle at .6872, followed closely by the main 50% level at .6880.
A sustained move under .6749 will signal the presence of sellers. This could spike the AUD/USD into the uptrending Gann angle at .6717. This is the last potential support angle before the .6677 main bottom.
This article was originally posted on FX Empire
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