AUD/USD Forex Technical Analysis – January 18, 2018 Forecast
The AUD/USD is trading higher on Thursday, but inside yesterday’s range. This indicates investor indecision and impending volatility. Investors remain driven by appetite for risk.
Early Thursday, Australia’s Employment Change report showed the economy added more jobs than expected last month. However, the Unemployment Rate increased from 5.4% to 5.5%.
Traders aren’t paying too much attention to rising U.S. Treasury yields, but if they do, then prices are likely to fall. A drop in gold and copper prices has also been ignored which suggests there must be a big buyer in there supporting prices. If he decides to sell then we could see a steep break over the near-term.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through .8022 will signal a resumption of the uptrend.
The short-term range is .7807 to .8022. Its retracement zone at .7914 to .7889 is the first support target. Since the main trend is up, we could see a technical bounce on the first test of this zone.
Daily Technical Forecast
Based on the early price action, the direction of the AUD/USD today is likely to be determined by trader reaction to an uptrending Gann angle at .8041. This angle provided support earlier in the session.
A sustained move over .8041 will indicate the presence of buyers. This could generate the upside momentum needed to challenge the long-term downtrending Gann angle at .8008. This is followed by .8022. Overtaking this high could fuel a rally into .8041 then .8066. The latter is the last major resistance angle before the .8124 and .8162 main tops.
A sustained move under .8041 will signal the presence of sellers. This could trigger a steep break into the short-term retracement zone at .7914 to .7889.
This article was originally posted on FX Empire
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