Yahoo Finance AUD/USD Forex Technical Analysis – Strengthens Over .7991, Weakens Under .7941
The AUD/USD finished higher last week. The Forex pair was driven higher by a weaker U.S. Dollar and increased demand for risky assets.
Weekly Swing Chart Analysis
The main trend is up according to the weekly swing chart. However, momentum is trying to shift back to the upside after a two-week break.
A trade through .8135 will signal a resumption of the uptrend. A move through .7758 will indicate momentum has shifted back to the downside.
The main range is .7501 to .8135. Its retracement zone is .7818 to .7743. This zone stopped the recent sell-off into .7758. This zone is controlling the near-term direction of the Forex pair.
The short-term range is .8135 to .7758. Its retracement zone at .7947 to .7991 was the primary upside target. This zone stopped last week’s rally at .7988.
The short-term zone is critical to the chart pattern because a failure to overcome it will indicate that sellers are forming a secondary lower top. This will eventually lead to a change in trend to the downside.
Weekly Swing Chart Forecast
Based on last week’s price action and the close at .7907, the direction of the AUD/USD today is likely to be determined by trader reaction to the short-term 50% level at .7947.
A sustained move over .7947 will indicate the presence of buyers. This could lead to a test of a downtrending Gann angle at .7975 and a Fibonacci level at .7991.
The Fib level at .7991 is the trigger point for an acceleration into the next downtrending Gann angle at .8055. This is the last potential resistance angle before the .8135 main top.
A sustained move under .7947 will signal the presence of sellers. A sustained move under the uptrending Gann angle at .7941 will indicate the selling is getting stronger.
The daily chart starts to open up under .7941 with the next targets coming in at .7818 and .7815.
This article was originally posted on FX Empire
