Yahoo Finance AUD/USD Forex Technical Analysis – Trader Reaction to .7528 Will Determine Direction
The AUD/USD closed higher on Monday, dragged up by a strong performance by the New Zealand Dollar. Oversold technical conditions may have contributed to some of the strength as well as position-squaring ahead of key domestic employment data and the U.S. Federal Reserve’s interest rate and monetary policy decisions.
Daily Swing Chart Analysis
The main trend is down according to the daily swing chart. A trade through .7501 will signal a resumption of the downtrend. A trade through .7653 will change the main trend to up.
The short-term range is .7653 to .7501. Its 50% level or pivot is .7577. Crossing to the strong side of this pivot will change the momentum to up.
The AUD/USD is currently straddling a major Fibonacci level. Trader reaction to this level could determine the near-term direction of the Forex pair.
The main range is .7159 to .8124. Its 50% to 61.8% retracement zone is .7642 to .7528. After consolidating inside this retracement zone for several weeks, the AUD/USD finally broke through the lower or Fibonacci level at .7528 last week.
This level is critical to the longer-term structure of the market. A sustained move under the Fib level will indicate the selling is getting stronger. This could lead to an eventual test of the next major support level at .7329.
Regaining and holding above .7528 will signal the return of buyers. If this generates enough upside momentum then look for the rally to extend into .7577. Overcoming this level could create the upside momentum needed to test the major 50% level at .7642 and the last main top at .7653. This level is the trigger point for an even stronger rally.
This article was originally posted on FX Empire
