Yahoo Finance AUD/USD Forex Technical Analysis – February 14, 2019 Forecast
The Australian Dollar is inching slightly higher early Thursday after posting a reversal top and lower close the previous session. On Wednesday, investors were caught following the New Zealand Dollar higher, and forgot about the strength in the U.S. Dollar.
The Aussie spiked higher early Wednesday after the Reserve Bank of New Zealand released a less-dovish-than-expected monetary policy statement. However, the currency topped out when the U.S. Dollar rallied on the back of strong Core Consumer Inflation data.
At 24:00 GMT, the AUD/USD is trading .7091, up 0.0003 or +0.024%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through .7053 will signal a resumption of the downtrend. The main trend will change to up on a move through .7296.
The minor trend is up. It changed to up on a trade through .7108 on Wednesday. This move shifted momentum to the upside. A trade through .7136 will indicate the buying is getting stronger, while a move through .7053 will change the minor trend to down and shift momentum back to the downside.
The major retracement zone is .7079 to .7154. This zone is controlling the longer-term direction of the Forex pair. The AUD/USD is currently trading inside this range.
The main range is .6764 to .7296. Its retracement zone at .7030 to .6967 is the primary downside target.
The short-term range is .7296 to .7053. Its retracement zone at .7175 to .7203 is the primary upside target.
Daily Technical Forecast
Based on the early price action, the direction of the AUD/USD on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at .7096 and the 50% level at .7079.
Bullish Scenario
A sustained move over .7096 will indicate the presence of buyers. If this move creates enough upside momentum then look for an acceleration into the minor top at .7136, followed closely by the major Fibonacci level at .7154.
Bearish Scenario
A sustained move under .7079 will signal the presence of sellers. The first downside target is the long-term uptrending Gann angle at .7064. We could see a technical bounce on the first test of this angle, but if it fails then look for the selling to extend into the minor bottom at .7053, followed by the main 50% level at .7030.
This article was originally posted on FX Empire
