The Australian Dollar is edging higher early Friday as investors await the release of the August U.S. Non-Farm Payrolls report that should set the tone of the market. On Thursday, the Aussie hit its highest level since August 1. This came two days after posting a closing price reversal bottom at .6688 on September 3.
At 07:00 GMT, the AUD/USD is trading .6827, up 0.0012 or +0.18%.
Fundamentally, the Australian Dollar turned higher earlier in the week after a report showed a contraction in ISM US Manufacturing PMI. The announcement of renewed trade talks between the United States and China also helped boost prices as well as higher Australian Government bond yields.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher. The trend will actually turn higher on a trade through .7082. A move through .6688 will negate the closing price reversal bottom and signal a resumption of the downtrend.
The minor trend is up. This confirmed the shift in momentum. A trade through .6830 will indicate the buying is getting stronger.
The new minor range is .6677 to .6830. Its 50% level or pivot at .6753 is controlling the short-term direction of the AUD/USD.
The main range is .7082 to .6677. Its retracement zone at .6880 to .6927 is the primary upside target. Since the main trend is down, sellers are likely to come in on a test of this area. This zone is also controlling the near-term direction of the Aussie.
Daily Technical Forecast
Based on the early price action and the current price at .6827, the direction of the AUD/USD on Friday is likely to be determined by trader reaction to a steep uptrending Gann angle at .6808.
A sustained move over .6808 will indicate the presence of buyers. Taking out .6830 could generate the upside momentum needed to challenge the main 50% level at .6880, the downtrending Gann angle at .6907 then the main Fibonacci level at .6927.
A sustained move under .6808 will signal the presence of sellers. This could trigger a steep break into the support cluster at .6753 to .6748.
A better-than-expected U.S. Non-Farm Payrolls report will dampen concerns over a recession. This should drive the AUD/USD sharply lower and erase most of this week’s gains.
A weaker-than-expected U.S. Non-Farm Payrolls report could spike the AUD/USD into .6880 to .6927.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Price Futures (GC) Technical Analysis – September 6, 2019 Forecast
- GBP/USD Daily Forecast – Sterling Eases Back from 5-Week High
- Surprise Decision in the UK To Thwart a No-Deal Brexit Changed The Dynamics Of The Markets.
- Nonfarm Payrolls, Trump’s Tweets and Johnson’s “Dead End”
- The Crypto Daily – The Movers and Shakers – 06/09/19
- Natural Gas Price Prediction – Prices Consolidate Following Inventory Release