AUD/USD Forex Technical Analysis – Major Decision for Buyers on Test of .7412 to .7427 – Yahoo Finance
The Australian Dollar is trading higher on Friday as investors attempt to recover some of this week’s losses. The currency is being supported by a rebound in demand for riskier assets and as the rapid progress on coronavirus vaccinations domestically raised hopes for an economic resurgence in coming months.
At 08:41 GMT, the AUD/USD is trading .7402, up 0.0033 or +0.45%.
Reuters is also reporting that the market mood is being bolstered by news that U.S. President Joe Biden had a wide-ranging call with his Chinese counterpart Xi Jinping on Thursday, offering hope for some thawing in relations between the super powers.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through .7478 will signal a resumption of the uptrend. A move through .7222 will change the main trend to down.
The minor trend is also up. A trade through .7345 will change the minor trend to down. This will also shift momentum to the downside.
The AUD/USD is currently trading on the strong side of the long-term Fibonacci level at .7379, making it support.
The short-term range is .7222 to .7478. Its retracement zone at .7350 to .7320 is support. This zone stopped the selling at .7345 on Wednesday.
The intermediate range is .7106 to .7478. Its retracement zone at .7292 to .7248 is another support area.
The minor range is .7478 to .7345. Its retracement zone at .7412 to .7427 is the next upside target. Trader reaction to this area will determine the near-term direction of the AUD/USD.
Daily Swing Chart Technical Forecast
The direction of the AUD/USD on Friday will be determined by trader reaction to .7379.
A sustained move over .7379 will indicate the presence of buyers. If this creates enough upside momentum then look for a drive into .7412 to .7427.
Look for aggressive counter-trend sellers to come in on a test of .7412 to .7427. They are going to try to form a potentially bearish secondary lower top. Look for an acceleration to the upside if buyers can take out .7427. This could trigger a move into the main top at .7478.
A sustained move under .7379 will signal the presence of sellers. The first downside target is .7350, followed by the minor bottom at .7345.
Taking out .7345 will change the minor trend to down. This could trigger a further break into .7320.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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