AUD/USD Forex Technical Analysis – August 18, 2015 Forecast
The AUD/USD is trading sideways to lower, despite a relatively upbeat economy by the Reserve Bank of Australia in the minutes of its August monetary policy meeting. The early session selling pressure may be attributed to position-squaring ahead of Wednesday’s U.S. consumer inflation data and the release of the latest Fed minutes.
Technically, the main trend is down on the daily chart. The short-term range is .7439 to .7215. Its 50% level or pivot is .7327. This price, which is currently being tested, is controlling the short-term direction of the market.
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A sustained move under .7327 is likely to drive the Aussie into the next support angle at .7315. The daily chart opens up further under this angle with the next target .7265.
A sustained move over .7327 will signal the presence of buyers. Overcoming a downtrending angle at .7339 will indicate the buying is getting stronger.
The main upside targets were tested earlier in the session. They include a steep uptrending angle at .7375 and a short-term downtrending angle at .7389. The next targets over these levels are longer-term resistance angles at .7397 and .7418.
Look for resistance on the first test of .7418, but be prepared for a potential upside breakout. The daily chart opens up over this level with the next major target a resistance cluster at .7482 to .7485.
Watch the price action and read the order flow on a test of .7327. Trader reaction to this level should determine the direction of the day.