AUD/USD Forex Technical Analysis – October 27, 2014 Forecast
The AUD/USD posted an outside move and lower close on Friday, suggesting that perhaps it is ready to break out of its tight and narrow range. We’ve seen this before, however. The key to sustaining the move will be a follow-through rally today.
Today’s support comes in at .8722 and .8682. The first angle stopped the break on Friday. If these angles fail then look for the selling to continue down to the main bottoms at .8651 and .8642.
Your capital is at risk
The short-term range is .8898 to .8651. Its pivot at .8774 is controlling the short-term direction of the market. Holding this level and overtaking an uptrending angle at .8802 will put the market in a strong position.
A sustained move over .8802 could create enough upside momentum to trigger a move into the nearest main top at .8898. Taking out this level will turn the main trend to up on the daily chart. This could lead to a test of the next main target at .8962.
The tone of the market today will be determined by trader reaction to the pivot at .8774.