AUD/USD Forex Technical Analysis – Trading on Strong Side of Main Pivot at .7397, Strengthens Over .7429

Lower Treasury yields and a weaker U.S. Dollar are underpinning the Australian Dollar early in the session on Tuesday. Better-than-expected domestic data is also helping to boost the Aussie. Building Approvals came in better-than-expected, up 6.4% versus 1.1% forecast. Private Sector Credit was steady at 0.3%.

At 0200 GMT, the AUD/USD is trading .7422, up 0.0014 or +0.19%.


Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7465 will signal a resumption of the uptrend. The main bottom is .7318.

The minor trend is also up. It changes to down on a move through .7370. This will also shift momentum to the downside.

The main range is .7310 to .7484. Its 50% level or pivot is .7397. Trading on the strong side of this level is helping to give the Aussie an upside bias.

The intermediate range is .7318 to .7465. Its retracement zone at .7391 to .7474 is support.

The short-term range is .7465 to .7370. The AUD/USD is currently testing its retracement zone at .7417 to .7429. Sellers are going to try to stop the rally on a test of this zone in an effort to form a secondary lower top. Buyers are going to try to drive the Forex pair through this zone in an effort to make .7370 a new main bottom.

Daily Swing Chart Technical Forecast

Based on the current price at .7417, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the 50% level at .7417.

A sustained move over .7417 will indicate the presence of buyers. Overtaking .7429 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the next targets .7465, .7484 and .7494.

A sustained move under .7417 will signal the presence of sellers. This could drive the AUD/USD back into a support cluster of 50% levels at .7397 to .7391.

A failure at .7391 could lead to a break into .7374 then .7370. Taking out .7370 will signal that sellers have returned to the market.

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.