AUD/USD Forex Technical Analysis – October 31, 2018 Forecast

The Australian Dollar is trading lower on Monday. Sellers took control after government figures showed quarterly inflation came in below expectations. Australian consumer Inflation was reported at 0.4%, below the 0.5% estimate. This matched the previous quarter’s figure. Trimmed Mean CPI also came in at 0.4% as expected, but the previous report was revised down to 0.4%.

At 1105 GMT, the AUD/USD settled at .7094, down 0.0012 or -0.17%.


Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through .7160 will change the main trend to up. A move through .7020 will signal a resumption of the downtrend.

The minor trend is up. The minor trend turned up on Tuesday. This also shifted momentum to the upside.

The short-term range is .7160 to .7020. Its retracement zone at .7090 to .7107 is controlling the near-term direction of the Forex pair. The AUD/USD is currently straddling this zone.

The main range is .7314 to .7020. If the main trend changes to up then its retracement zone at .7167 to .7202 will become the primary upside target.

Daily Technical Forecast

Based on the early price action, the direction of the AUD/USD on Wednesday is likely to be determined by trader reaction to the Fibonacci level at .7107 and the 50% level at .7090.

A sustained move over .7107 will indicate the buying is getting stronger. If this creates enough upside momentum then look for buyers to take out yesterday’s high at .7122.

The daily chart indicates there is plenty of room to the upside over .7122. This is a potential trigger point for an acceleration into .7160 then .7167.

The inability to overcome .7107 will be the first sign of selling pressure. Taking out .7090 will indicate the selling is getting stronger. This could trigger a move into the uptrending Gann angle at .7080. This angle provided support earlier today.

Look for a potential acceleration to the downside if .7080 fails as support. This could trigger a further break into the next uptrending Gann angle at .7050.

Basically, look for an upside bias to develop on a sustained move over .7107. Look for a downside bias to develop on a sustained move under .7090.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.