AUD/USD Forex Technical Analysis – Today’s Downside Target .6851 – .6849
The Australian Dollar is trading flat on Monday as investors position themselves ahead of Tuesday’s Westpac Consumer Sentiment report and Thursday’s Employment Change and Unemployment Rate reports. Volume is below average with the U.S. on a banking holiday.
The Employment Change is expected to show 11.2K jobs were added to the economy in January. This is down from 39.9K in November. The Unemployment Rate is expected to remain unchanged at 5.2%. This report could determine whether the Reserve Bank of Australia (RBA) lowers its benchmark interest rate or leaves it unchanged.
At 08:53 GMT, the AUD/USD is trading .6874, up 0.0002 or +0.03%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through .6934 will change the main trend to up. A move through .6849 will reaffirm the downtrend.
The main range is .7082 to .6671. Its retracement zone at .6876 to .6925 is controlling the longer-term direction of the Forex pair.
The short-term range is .6671 to .7032. Its retracement zone at .6851 to .6809 is the next downside target zone.
Daily Swing Chart Technical Forecast
Based on the early price action and the current price at .6874, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the main 50% level at .6876.
Bearish Scenario
A sustained move under .6876 will indicate the presence of sellers. This could trigger a break into a potential support cluster at .6851 to .6849.
Bullish Scenario
A sustained move over .6876 will signal the presence of buyers. This could trigger a rally into a minor pivot at .6903. This is followed by a loose resistance cluster at .6925 to .6834.
This article was originally posted on FX Empire
