The Australian Dollar is easing a little against the U.S. Dollar on Tuesday as traders seem a little reluctant to buy so close to a multi-year high and ahead of the Fed’s monetary policy decisions on Wednesday and as the U.S. Congress moves closer to another massive stimulus plan. However, we expect the Aussie to continue to track market sentiment, ahead of U.S. economic releases.
At 09:15 GMT, the AUD/USD is trading .7141, down 0.0008 or -0.11%.
The Aussie is likely taking a pause with the reasons for the U.S. Dollar’s broad decline, especially falling real yields, still intact, but the pace of the plunge will probably slow with a Fed meeting and a U.S. spending package in the offing.
Buyers could also be letting up ahead of Wednesday’s Australian consumer inflation reports.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through .7182 will signal a resumption of the uptrend. Today’s intraday high is .7177. The main trend will change to down on a move through .7064.
The minor range is .7182 to .7064. Its 50% level at .7123 is providing support on Tuesday.
The second minor range is .6963 to .7182. Its 50% level at .7072 is the next potential support level.
The short-term range is .6833 to .7182. Its retracement zone at .7007 to .6966 is key support. This zone is controlling the near-term direction of the AUD/USD.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the AUD/USD the rest of the session on Tuesday is likely to be determined by trader reaction to .7123.
A sustained move over .7123 will indicate the presence of buyers. If this move creates enough upside momentum then look for a retest of the intraday high at .7177.
Taking out .7177 will likely fuel a breakout over .7182. This could lead to a test of the April 17 main top at .7206.
A sustained move under .7123 will signal the presence of sellers. This could trigger an acceleration into .7072 to .7064. Since the main trend is up, buyers are likely to come in on a test of this area as traders attempt to defend the uptrend.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- EUR/USD Price Forecast – Euro Drifts Slightly Lower
- U.S. Stocks Set To Open Lower As Traders Wait For Results Of Coronavirus Aid Negotiations
- Natural Gas Price Fundamental Daily Forecast – Stimulus Expectations, Fed Likely Catalysts Behind Rebound
- Silver Price Daily Forecast – Crazy Action In Silver
- Making Sense of the Short-Term S&P 500 Chop
- Asian Shares Mostly Higher; South Korea’s KOSPI Rallies as Samsung Shares Jump 5.4%