Yahoo Finance AUD/USD Forex Technical Analysis – April 22, 2019 Forecast
The Australian Dollar is trading lower on Monday. The country is on bank holiday so the major institutions are on the sidelines. The early selling pressure is likely being fueled by position-squaring ahead of this week’s consumer inflation report.
We’re also looking at a continuation of the weakness from late last week. Traders could also be pricing in a potential rate cut later in the year after failing to react positively to stronger-than-expected Chinese growth data and better-than-expected Employment Change data.
At 03:48 GMT, the AUD/USD is trading .7136, down 0.0015 or -0.20%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through .7206 will signal a resumption of the uptrend. The main trend will change to down on a trade through .7052.
The minor trend is also up. A trade through .7109 will change the minor trend to down. This will also shift momentum to the downside.
The main range is .7394 to .6764. Its retracement zone at .7153 to .7079 is controlling the longer-term direction of the Forex pair. The Aussie is currently trading inside this zone. This makes the Fibonacci level at .7153 new resistance and the 50% level at .7079 the next downside target.
The short-term range is .7052 to .7206. Its retracement zone at .7129 to .7111 is the next downside target.
Daily Technical Forecast
Based on the early price action, the direction of the AUD/USD is likely to be determined by trader reaction to the resistance cluster at .7149 and the Fibonacci level at .7153.
Bullish Scenario
Overtaking .7153 and sustaining the move will indicate the presence of buyers. If this move can create enough upside momentum then look for a possible retest of the .7206 main top. Taking out .7206 will indicate the buying is getting stronger with the next upside target the downtrending Gann angle at .7272. This is followed by another main top at .7296.
Bearish Scenario
A sustained move under .7149 will signal the presence of sellers. If this generates enough downside momentum then look for a move into the short-term retracement zone at .7129 to .7111. Since the main trend is up, buyers could step in on a test of this area.
If .7111 fails then look for sellers to take out .7109. This could trigger an acceleration into the main 50% level at .7079.
This article was originally posted on FX Empire
