The AUD/USD is trading lower on Wednesday after the release of a disappointing employment report. Australian employment was up in March, extending the streak of consecutive job gains to a record 18 months, however the report indicated the pace of unemployment is slowing.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, upside momentum has slowed, given four days of sideways action.
A trade through .7809 will signal a resumption of the uptrend. A trade through .7743 will change the minor trend to down.
The Aussie is trading inside a major retracement zone formed by .7818 to .7743. This zone is controlling the longer-term direction of the Forex pair.
The AUD/USD has also been straddling a 50% level at .7779. This level may be controlling the momentum of the market.
The short-term range is .7652 to .7809. Its retracement zone at .7730 to .7712 is the primary downside target.
The main range is .8135 to .7642. Its retracement zone at .7889 to .7947 is the primary upside target.
Daily Swing Chart Technical Forecast
Based on the early trade, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the 50% level at .7779.
A sustained move under .7779 will signal the presence of sellers. This could create the downside momentum needed to challenge .7743. This is followed by .7730 and .7712. Since the main trend is up, buyers could come in on a test of .7730 to .7712. They are going to try to form a potentially bullish secondary higher bottom.
A sustained move over .7779 will indicate the presence of buyers. This could generate the upside momentum needed to challenge .7809 then .7818.
This article was originally posted on FX Empire
More From FXEMPIRE:
- S&P 500; US Indexes Fundamental Daily Forecast – Strong Earnings, Energy Sector Surge Behind Current Strength
- Silver markets rally significantly on Wednesday
- Natural gas markets rally, then fell on Wednesday
- Bitcoin and Ethereum Price Forecast – Slow and Steady Higher
- Bitcoin Loses Out to Bitcoin Cash – Is it the Beginning of the End?
- Price of Gold Fundamental Daily Forecast – Supported by Commodities Surge, Pressured by Appetite for Risky Assets