Yahoo Finance AUD/USD Forex Technical Analysis – Weekly Chart Says Bearish Under .7809, Bullish Over .7844
The AUD/USD closed lower last week as the Forex pair continued to consolidate slightly above a major retracement zone and slightly below a short-term retracement area. Despite the sideways price action the past three weeks, the bias remains to the downside, mostly due to the divergence in monetary policy between the Reserve Bank of Australia and the U.S. Federal Reserve. Simply stated, the RBA is dovish and the Fed is hawkish.
Weekly Technical Analysis
The main trend is down according to the weekly swing chart. A trade through .7733 will signal a resumption of the downtrend. The last main top is .8124.
The main range is .7329 to .8124. Its retracement zone at .7726 to .7633 is the primary downside target and support zone. This area is essentially controlling the longer-term direction of the AUD/USD.
The short-term range is .8124 to .7733. Its retracement zone at .7929 to .7975 is the primary upside target and resistance area. Since the main trend is down, I expect to see sellers return on a test of this retracement zone.
Weekly Forecast
Based on Friday’s close at .7814, the direction of the AUD/USD this week is going to be determined by trader reaction to a pair of Gann angles at .7844 and .7809.
A sustained move under the uptrending Gann angle at .7809 will signal the presence of sellers. This could trigger an acceleration into .7733 and .7726.
The weekly chart opens up to the downside under .7726 with the next target the Fibonacci level at .7633.
Overtaking the downtrending angle at .7844 and sustaining the move could trigger a surge into the short-term retracement zone at .7928 to .7975. This is followed by a downtrending angle at .7984.
Simply stated, this week, look for a bullish tone to develop on a sustained move over .7844 and a bearish tone on a sustained move under .7809.
This article was originally posted on FX Empire
