AUD/USD Forex Technical Analysis – June 18, 2018 Forecast

The AUD/USD closed lower on Friday and in a position to continue the pressure on Monday. Today is the eighth day down from the last main top on June 6. This puts it in the window of time for a closing price reversal bottom. This chart pattern does not mean the trend is getting ready to turn up, but we could see a 2 to 3 day counter-trend rally, designed to alleviate some of the downside pressure.

The key to success today is to start off playing the trend, but be prepared for a possible reversal to the upside especially as the AUD/USD nears the next major bottom at .7412.

Daily AUD/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. A sustained move under .7448 will indicate the selling is getting stronger with the next target the .7412 main bottom.

Regaining .7448 will indicate the selling is getting weak. Overcoming .7476 will indicate the short-covering is getting stronger. This could fuel a really into a Fibonacci level at .7513.

Daily Technical Forecast

Based on Friday’s close at .7443, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the uptrending Gann angle at .7447.

A sustained move under .7447 will indicate the presence of sellers. If this move creates enough downside momentum, we could see an extension of the selling into .7412. A trade through this level will reaffirm the downtrend with the June 2, 2017 main bottom at .7372 the next major downside target.

A sustained move over .7447 will signal the presence of buyers. If this move generates enough upside momentum then look for the rally to extend into the next uptrending Gann angle at .7482.

Overcoming the Gann angle at .7482 will indicate the buying is getting stronger with the next upside targets coming in at .7513 and .7517.

This article was originally posted on FX Empire

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