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AUD/USD Forex Technical Analysis – Key Area to Watch is .7588 to .7575

The AUD/USD posted a two-sided trade on Monday. Early in the session, the Australian Dollar was supported by a weaker U.S. Dollar. Later, it retreated following hawkish remarks from Robert Kaplan, Dallas Fed President, in an essay posted on the central bank’s website.

The U.S. Dollar also got a boost from a tweet on the progress of U.S. tax reform from U.S. President Donald Trump.

AUDUSD
Daily AUD/USD

Daily Swing Chart Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since November 21. A trade through .7644 will indicate the buying is getting stronger, however, the trend will not change to up until .7729 is taken out.

A move through .7532 will signal a resumption of the downtrend.

The major retracement zone is .7642 to .7527. The market is currently trading inside this range. It is controlling the longer-term direction of the AUD/USD.

The short-term range is .7532 to .7644. Its retracement zone at .7588 to .7575 is a key support area. Aggressive counter-trend buyers are going to try to establish a potentially bullish secondary higher bottom on a test of this zone. If successful, this could lead to a resumption of the short-term counter-trend rally.

A failure to hold .7575 will indicates the sellers have returned. This could lead to a retest of last week’s low at .7532 and the major Fibonacci level at .7527.

AUDUSD
Daily AUD/USD (Close-Up)

Daily Swing Chart Forecast

The direction of the AUD/USD is likely to be determined by trader reaction to .7588 to .7575.

A sustained move over .7588 will indicate the presence of buyers. This could trigger a rally into .7642 to .7644. Taking out .7644 could trigger an acceleration to the upside.

A sustained move under .7575 will signal the presence of sellers. This could trigger a break into .7532 then .7527. This is the trigger point for an acceleration to the downside.

This article was originally posted on FX Empire

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