Yahoo Finance AUD/USD Forex Technical Analysis – Finishes Week Strong After Testing 13-Month Low
The AUD/USD closed slightly lower last week after posting a dramatic rebound from a test of its lowest level since May 2017. There were no changes in the traditional fundamentals. The divergence between the monetary policies of the hawkish U.S. Federal Reserve and the dovish Reserve Bank of Australia continued to dominate the trend.
This news drove the AUD/USD into its 13-month low early in the week. While profit-taking, short-covering and position-squaring helped reverse the selling pressure late in the week. Traders played both sides of the fence in regards to escalating trade tensions between the U.S. and China. Volatile U.S. Treasury yields also helped generate the two-sided trade.
Weekly Technical Analysis
The main trend is down according to the weekly swing chart. A trade through .7345 will signal a resumption of the downtrend. The main trend will change to up on a trade through .7812.
The minor trend is also down. A move through .7677 will change the minor trend to up. This will also shift momentum to the upside.
The major range is .7159 to .8135. Its retracement zone at .7532 to 7647 is new resistance. Buyers will have to recover this zone to shift the bias slightly to the upside.
Weekly Technical Forecast
Based on last week’s close at .7440, the direction of the AUD/USD this week is likely to be determined by trader reaction to the downtrending Weekly Gann angle at .7412.
A sustained move over .7412 will indicate the presence of buyers. If this short-covering generates enough upside momentum then look for the rally to possibly extend into the major Fibonacci level at .7532. Since the main trend is down, we could see a technical bounce on the first test of this level.
Overcoming .7532 could trigger an acceleration to the upside with the downtrending weekly Gann angle at .7612 the next likely target.
A sustained move under .7412 will signal the presence of sellers. If this move creates enough downside momentum then look for a possible break into last week’s low at .7345, followed closely by the May 9, 2017 main bottom at .7329.
Taking out .7329 could drive the AUD/USD into another downtrending Gann angle at .7255. Crossing to the weak side of this angle will put the Forex pair in an extremely bearish position.
Traders should treat the Gann angle at .7412 like a pivot all week.
This article was originally posted on FX Empire
More From FXEMPIRE:
GBP/USD Price Forecast – British pound rallies against US dollar
GBP/JPY Weekly Price Forecast – British pound finds support against Japanese yen again
Natural Gas Price Forecast – natural gas markets fall hard on Friday
Natural Gas Weekly Price Forecast – natural gas finds three dollars too much
AUD/USD Forex Technical Analysis – Finishes Week Strong After Testing 13-Month Low
Crude Oil Weekly Price Forecast – markets rally significantly
