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The AUD/USD finished lower last week, settling at .7694, down 0.0016 or -0.21%. The main trend is up according to the weekly swing chart, however, momentum has been trending lower since the week-ending January 26.
A trade through .8135 will signal a resumption of the uptrend. The main trend will change to down on the weekly chart on a trade through .7501.
The main range is formed by the .7159 main bottom from the week-ending December 23, 2016 and the .8135 main top from the week-ending January 26, 2018. Its 50% to 61.8% retracement zone and primary downside target is .7647 to .7532. Since the main trend is up, buyers may come in on a test of this zone so watch for a technical bounce on the first test of this area.
The short-term range is formed by the .7501 main bottom from the week-ending December 8, 2017 and the .8135 main top from the week-ending January 26, 2018. Its 50% to 61.8% retracement zone is .7743 to .7818.
The retracement zone is new resistance. The close below this zone is helping to give the AUD/USD a downside bias.
Look for the downside momentum to continue as long as the AUD/USD remains under .7743. Watch for a technical bounce on the first test of .7647, but be prepared for an acceleration to the downside if this level fails with .7532 the next likely target.
Overtaking and sustaining a move over .7743 will signal the return of buyers. This could trigger a rally back to .7818.
This article was originally posted on FX Empire