Forex AUD / USD Technical Analysis – Countertrend Rally Through .7293 Shifts Momentum To The Upward
The Australian dollar is slightly higher on Friday on squaring positions before the weekend. Despite the early gains, the currency remains in a position to close lower for a third week in a row.
A batch of bullish US economic data helped push the greenback higher against its Australian counterpart throughout the week. The Aussie was also put under pressure by a salary report that failed to impress bullish traders. But it did support the RBA’s dovish outlook on the cash rate outlook that there will be no interest rate hike in 2022 or 2023.
At 08:03 GMT, the AUD / USD is trading at 0.7283, up 0.0006 or + 0.09%.
Technical analysis of the daily swing chart
The main trend is downward according to the daily swing chart. However, momentum could prepare to shift higher with the formation of a closing price reversal low on Thursday.
A trade up to .7293 will confirm the reversal low in the closing price. This will not change the main uptrend, but it could trigger the start of a 2-3 day countertrend rally.
A move through .7431 will change the main trend upward. A trade up to .7250 will cancel the reversing low in the closing price and signal a resumption of the downtrend.
The minor trend is also downward. A trade through .7371 will change the minor trend upward. This will confirm the change in momentum.
The primary range is 0.7170 to 0.7556. The market is currently trading on the weak side of its retracement area at 0.7318 to 0.7363 making it resistance. This area controls the short term direction of the Forex pair.
The short-term range is 0.7556 to 0.7250. Its 50% level at 0.7403 is the next potential target on the upside.
Technical forecasts of the daily swing chart
The direction of the AUD / USD on Friday will likely be determined by the reaction of traders at .7293 and .7250.
A sustained move above .7293 will indicate the presence of buyers. This could lead to some really strenuous work with potential upside targets lined up at .7318, .7363 and .7371.
A sustained move below .7250 will signal the presence of sellers. This could create the momentum to challenge the next target at 0.7226. Removing this level will indicate that the sell is getting stronger with .7170 the next likely target.