The AUD/USD is trading lower on Thursday. After three days of sideways-to-lower trading, the market appears to be poised to take out the low from last Friday’s wide range.
Daily Technical Analysis
The main trend is up according to the daily swing chart, however, momentum has shifted to the downside. A trade through .7956 will change the main trend to down. A move through .8135 will signal a resumption of the uptrend.
The short-term range is .7956 to .8135. Its 50% level or pivot is at .8046. This price is controlling the short-term direction of the market. Today, the Forex pair is trading on the weak side of the pivot, giving it a downside bias.
The main range is .7807 to .8135. Its retracement zone at .7971 to .7932 is the first major downside target.
Daily Technical Forecast
Based on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the short-term uptrending Gann angle at .8026.
A sustained move under .8026 will indicate the presence of sellers. This could lead to an acceleration to the downside with the next two targets coming in at .7977 and .7971. We could see a technical bounce on the first test of this area.
If .7971 fails as support then look for the selling to extend into .7956 then .7932.
A sustained move over .8026 will signal the presence of buyers. The next target is the pivot at .8046. Overcoming this level will give the AUD/USD an intraday upside bias. This could generate the upside momentum needed to test an uptrending Gann angle at .8096.
This article was originally posted on FX Empire