The Australian Dollar is trading slightly better Friday after erasing earlier gains. In light of the absence of fresh economic data, today’s price action is likely being fueled by position-squaring and profit-taking ahead of the week-end after this week’s steep losses. Today’s intraday low at .7076 fell slightly below the major 50% level that is controlling the near-term direction of the currency.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="At 0632 GMT, the AUD/USD is trading .7104, up 0.0013 or +0.19%.” data-reactid=”12″>At 0632 GMT, the AUD/USD is trading .7104, up 0.0013 or +0.19%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through .7236 will change the main trend to up. A move through .6764 will signal a resumption of the downtrend.
The minor trend is also down. A move through .7167 will change the minor trend to up. This will also shift momentum to the upside.
The main range is .7394 to .6764. Its retracement zone at .7079 to .7153 is controlling the longer-term direction of the Forex pair. The Aussie is currently trading inside this range after a successful test of the lower or 50% level at .7079.
The short-term range is .6764 to .7236. If the selling pressure continues then look for the break to possibly extend into its retracement zone at .7000 to .6944.
Daily Technical Forecast
Based on the early price action and the current price at .7104, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at .7084 and the 50% level at .7079.
A sustained move over .7084 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the downtrending Gann angle at .7136. This angle has been guiding the AUD/USD lower since January 11 so we could see sellers on the first test of this angle. Overtaking .7136 could extend the rally into .7153.
A sustained move under .7079 will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside under this level so watch for an acceleration to the downside if sellers come in strong.
The first downside target is a downtrending Gann angle at .7024. Crossing to the weak side of this angle will indicate the selling is getting stronger with the next target the 50% level at .7000.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This article was originally posted on FX Empire” data-reactid=”36″>This article was originally posted on FX Empire
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