Yahoo Finance AUD/USD Forex Technical Analysis – February 20, 2019 Forecast
The Australian Dollar is trading lower on Wednesday after an early attempt to breakout to the upside failed to attract enough buyers to extend the move. Despite the early setback, there is still an upside bias underpinning the Aussie. This is being fueled by the hopes of a U.S.-China trade deal after President Trump hinted once again on Tuesday that he would be flexible with the current March deadline.
At 04:32 GMT, the AUD/USD is trading .7164, down 0.0002 or -0.03%.
Look for volatility later in the session at 19:00 GMT when the U.S. Federal Reserve releases its January Monetary Policy Meeting Minutes.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through .7296 will change the main trend to up. A move through .7053 will signal a resumption of the downtrend.
The minor trend is up according to the minor trend indicator. This is helping to generate the upside momentum. A trade through .7103 will change the minor trend to down.
The major retracement zone providing support is .7154 to .7079. This zone is also controlling the near-term direction of the Forex pair.
The main range is .7296 to .7053. Its retracement zone at .7175 to .7203 is the primary upside target. The lower or 50% level of this zone at .7175 was tested earlier in the session. Since the trend is down, sellers could show up on the first test of this zone.
Daily Technical Forecast
Based on the early price action, the direction of the AUD/USD on Wednesday is likely to be determined by trader reaction to the 50% level at .7175 and the Fibonacci level at .7154.
Bullish Scenario
A sustained move over .7175 will indicate the presence of buyers. If this generates enough upside momentum then look for a potential extension of the rally with the Fibonacci level at .7203 the next upside target. This is followed by a downtrending Gann angle at .7226.
Bearish Scenario
The inability to overcome .7175 will signal the lack of buyers. Crossing to the weak side of the Fibonacci level at .7154 will signal the presence of sellers. This will also put the Forex pair on the weak side of a downtrending Gann angle at .7156.
The daily chart is wide open to the downside under .7156 with the next major target angle coming in at .7102. This forms a support cluster with the minor bottom at .7103.
Look for volatility at 19:00 GMT with the release of the Fed minutes.
This article was originally posted on FX Empire
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