Advertisement
Singapore markets closed
  • Straits Times Index

    3,224.01
    -27.70 (-0.85%)
     
  • Nikkei

    40,369.44
    +201.37 (+0.50%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Bitcoin USD

    69,944.10
    -748.90 (-1.06%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • FTSE Bursa Malaysia

    1,536.07
    +5.47 (+0.36%)
     
  • Jakarta Composite Index

    7,288.81
    -21.28 (-0.29%)
     
  • PSE Index

    6,903.53
    +5.36 (+0.08%)
     

AUD/USD Forex Technical Analysis – Testing Major Weekly Retracement Zone

The AUD/USD settled sharply lower last week with the price action driven by a combination of weaker than expected Australian economic data, lower demand for risk and heightened concerns over U.S.-China trade relations. Last week, the RBA held rates steady at 1.50%. GDP came in well-below expectations, which likely means the RBA will have to delay its plans to raise interest rates in 2019. U.S.-China trade relations were shaken last week by the arrest of the CFO of a Chinese technology company. Conditions could worsen this week if the U.S. announces the arrest of Chinese hackers as widely speculated.

{alt}
Weekly AUDUSD

Weekly Swing Chart Technical Analysis

The main trend is up according to the weekly swing chart. However, last week’s closing price reversal top signals a major shift in investor sentiment. This chart pattern won’t change the trend to down, but it does signal a shift in momentum to the downside.

ADVERTISEMENT

The minor trend is also up. A trade through .7164 will change the minor trend to down. This will also shift momentum to the downside.

The main range is .7020 to .7394. The AUD/USD is currently trading inside the .7207 to .7163 retracement zone. This zone is controlling the longer-term direction of the Forex pair.

Weekly Swing Chart Technical Forecast

Based on last week’s close at .7187, the direction of the AUD/USD this week is likely to be determined by trader reaction to the 50% level at .7207.

Bullish Scenario

A sustained move over .7207 will indicate the presence of buyers. This could lead to a 50% to 61.8% retracement zone of the break from last week’s high at .7394.

Bearish Scenario

A sustained move under .7207 will signal the presence of sellers. The first target is the minor bottom at .7164. This is followed closely by the Fibonacci level at .7163.

The daily chart is wide open under .7163. This could trigger an acceleration to the downside with the main bottom at .7020 the next major downside target.

This article was originally posted on FX Empire

More From FXEMPIRE: