AUD/USD Forex Technical Analysis – May 15, 2018 Forecast
Rising U.S. Treasury yields and soft Reserve Bank of Australia monetary policy meeting minutes are putting pressure on the Australian Dollar on Tuesday.
At 1202 GMT, the AUD/USD is trading .7489, down 0.0036 or -0.48%.
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Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through .7412 will signal a resumption of the downtrend.
The minor trend is up. A trade through .7566 will signal a resumption of this uptrend and shift momentum to the upside.
The main range is .7812 to .7412. Its retracement zone at .7612 to .7659 is the primary upside target.
The short-term range is .7412 to .7566. Its retracement zone at .7489 to .7471 is currently being tested. This zone is important because aggressive counter-trend traders could come in to buy in an effort to form a potentially bullish secondary higher bottom.
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 short-term 50% level at .7489.
A sustained move over .7489 will indicate the presence of buyers. If this move generates enough upside momentum, we could see an eventual retest of the minor top at .7566.
A sustained move under .7489 will signal the presence of sellers. This could trigger a quick break into the short-term Fib level at .7471. We could see a technical bounce on the first test of this level. However, it is also the trigger point for an acceleration to the downside with the next target the main bottom at .7412.