AUD/USD Forex Technical Analysis – .7742 Potential Trigger Point for Acceleration into April 2018 Top at .7812

The Australian Dollar is trading higher on Monday, helped by demand for riskier assets as the U.S. Dollar continued to weaken. A stronger Chinese Yuan also boosted interest in the Aussie. Chinas currency breached 6.4900 for the first time since mid-2018.

The catalysts setting off the price action were investors wagering a global economic recovery will suck U.S. Dollars into riskier assets even as the U.S. has to borrow ever more to fund its swelling twin deficits.

At 10:38 GMT, the AUD/USD is trading .7735, up 0.0035 or +0.45%.

Daily AUD/USDDaily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7742 will signal a resumption of the uptrend. The uptrend is safe for now. A move through .7339 will change the main trend to down.

The minor trend is also up. A trade through .7652 will change the minor trend to down. This will also shift momentum to the downside.

The first minor range is .7742 to .7652. Its 50% level at .7697 is support.

The second minor range is .7557 to .7742. Its 50% level at .7649 is additional support.

Daily Swing Chart Technical Forecast

The direction of the AUD/USD is likely to be determined by trader reaction to the first pivot at .7697.

Bullish Scenario

A sustained move over .7697 will indicate the presence of buyers. If this move creates enough upside momentum then look for a test of last weeks high at .7742. Taking out this level could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under .7697 will signal the return of sellers. This could trigger a break into the support cluster at .7652 to .7649. Taking out this area will change the minor trend to down and also shift momentum to the downside. If it creates enough downside momentum then look for the selling to possibly extend into the next pivot at .7602.

Side Notes

Taking out .7742 then closing lower will form a daily closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.