AUD/USD Forex Technical Analysis – Waiting for Catalyst to Set Off Next Move

James Hyerczyk

Updated Tue, Apr 3, 2018, 8:15 PM

The Reserve Bank of Australia’s decision to leave interest rates unchanged was widely expected and didn’t have any effect on the price action. Traders are likely to continue to keep their focus on the movement of risky assets and any news having to do with trade issues between China and the United States.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7642 will signal a resumption of the downtrend. A move through .7784 will change the main trend to up.

The minor trend is also down. A trade though .7706 will change the minor trend to up and change momentum to the upside.

The short-term range is .7784 to .7642. Its retracement zone at .7713 to .7730 is currently providing resistance. This is followed by a long-term Fibonacci level at .7743. This is also resistance and a possible trigger point for an acceleration to the upside.

The daily chart indicates there is plenty of room to the downside under .7642 with the December 8 bottom at .7501 the next major downside target.

Daily Swing Chart Technical Forecast

Based on the recent price action, it looks like the AUD/USD is going to remain rangebound until the selling resumes though .7642, or the short-covering is strong enough to take out .7706.

The daily chart also indicates that the way of least resistance is down and that any rallies are likely to be labored because of the series of potential resistance levels.

This article was originally posted on FX Empire