The Australian Dollar is trading higher for a second session on Tuesday as firmer Asia Pacific stock markets point toward rising demand for risky assets. Furthermore, the beat-up Asian currencies are making a comeback on Tuesday, as investor risk appetite recovered on speculation the rate of coronavirus infection is apparently slowing down, even as the death toll rises.
At 07:27 GMT, the AUD/USD is trading .6714, up 0.0029 or +0.44%.
The Aussie is also getting a boost from a firmer Chinese Yuan. The People’s Bank of China held its midpoint guidance relatively steady, even though the U.S. Dollar was up sharply overnight. China’s Yuan was firm at 6.9773 per dollar.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through .6774 will change the main trend to up. A move through .6662 will signal a resumption of the downtrend.
The minor range is .6774 to .6662. Its 50% level or pivot at .6718 is controlling the near-term direction of the AUD/USD.
The short-term range is .6934 to .6662. If the trend changes to up then its retracement zone at .6798 to .6830 will become the primary upside target.
Daily Technical Forecast
Based on the early price action and the current price at .6714, the direction of the AUD/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the pivot at .6718.
A sustained move under .6718 will indicate the presence of sellers. It will also mean they are respecting the pivot as resistance. This could trigger a break back to the downtrending Gann angle at .6694.
Crossing to the weak side of the downtrending Gann angle at .6694 will put the AUD/USD in a bearish position with .6662 the next potential downside target.
A sustained move over .6718 will signal the presence of buyers. This could trigger a surge into a pair of downtrending Gann angles at .6734 and .6742. Look for sellers on the first test of this angles.
Overtaking .6742 could trigger a breakout to the upside with the main top at .6774 the next upside target.
This article was originally posted on FX Empire
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