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The Australian Dollar is trading lower early Tuesday shortly before the release of the Reserve Bank of Australia Rate Statement and interest rate decision at 0430 GMT. The RBA is widely expected to leave its benchmark interest rate at 1.50%.
At 0244 GMT, the AUD/USD is trading .7633, down 0.0016 or -0.20%.
On Monday, increased demand for higher risk helped spike the Aussie to its highest level since April 23. Early Tuesday, the AIG Services Index was reported at 59.0, up from 55.2. The Current Account was worse than expected at -10.5B. Traders were looking for -9.98B. The previous read was revised lower to -14.7B.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through .7667 will signal a resumption of the uptrend.
The minor trend is also up. A trade through .7515 will change the minor trend to down. This will also shift momentum to the downside.
The main range is .7812 to .7412. Its retracement zone at .7612 to .7659 is currently being tested. This zone is controlling the near-term direction of the Forex pair.
The new short-term range is .7476 to .7667. If there is a short-term break then its retracement zone at .7571 to .7549 will become the primary downside target.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the main Fibonacci level at .7659 and yesterday’s high at .7667.
A sustained move under .7659 will indicate the presence of sellers. This could drive the Forex pair into the main 50% level at .7612. We could see a technical bounce on the first test of this level. If it fails then look for a possible acceleration into the short-term 50% level at .7571.
Overtaking yesterday’s high at .7667 and sustaining the move will signal the presence of buyers. If this move generates enough upside momentum, we could see an acceleration to the upside. The daily chart indicates there is no major resistance until the April 19 main top at .7812.
This article was originally posted on FX Empire