AUD/USD Forex Technical Analysis – July 26, 2016 Forecast
In a surprise move, the AUD/USD surged to the upside one day ahead of a key Australian consumer inflation report. Traders were caught by surprise by the rally, which may have been triggered by doubts that the Bank of Japan will deliver an aggressive increase in monetary stimulus following the conclusion of its July meeting on Friday.
The main trend is up according to the daily swing chart. However, momentum had been to the downside since July 15. Today’s price action signals a change in momentum back to up.
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The market found support at .7442 late last week inside a retracement zone at .7480 to .7434. This area is support today along with an uptrending angle at .7425.
On the upside, the AUD/USD is currently testing a downtrending angle at .7535. Overtaking this angle will indicate the buying is getting stronger.
The short-term range is .7675 to .7442. Its retracement zone at .7558 to .7586 is the primary upside target.
Watch the price action and read the order flow at .7535 all session. Trader reaction to this angle will tell us if the buying is getting stronger or if the sellers are regaining control.