AUD/USD Forex Technical Analysis – Strengthens Over .7243, Weakens Under .7237
The Australian Dollar is trading lower on Tuesday after the Reserve Bank of Australia (RBA) left its cash rate at a record low of 0.1% on Tuesday, a well flagged decision given it currently expects to keep policy super easy out to 2024.
Australia’s central bank made the announcement following its monthly policy meeting. A Reuters poll found all 36 analysts surveyed had expected a steady outcome this week.
At 03:58 GMT, the AUD/USD is trading .7267, down 0.0023 or -0.31%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through .7316 will change the main trend to up. A move through .7170 will signal a resumption of the downtrend.
The first minor range is .7316 to .7170. Its 50% level or pivot at .7243 is the first downside target. The second minor range is .7170 to .7304. Its 50% level comes in at .7237. Both 50% levels are potential support levels.
The short-term range is .7478 to .7170. Its 50% level at .7324 is potential resistance. This is followed by a Fibonacci level at .7379, which is longer-term resistance.
Daily Swing Chart Technical Forecast
The direction of the AUD/USD on Tuesday is likely to be determined by trader reaction to the pivot at .7243.
Bullish Scenario
A sustained move over .7243 will indicate the presence of buyers. If this move creates enough upside momentum then look for the buying to possibly extend into the main top at .7316, followed by the 50% level at .7324. This is a potential trigger point for an acceleration into .7379.
Bearish Scenario
A sustained move under .7243 will signal the presence of sellers. This is followed closely by another pivot at .7237. This is a potential trigger point for an acceleration to the downside with .7170 the next likely target.
Side Notes
With traders positioning themselves ahead of Friday’s U.S. Non-Farm Payrolls report, don’t be surprised if traders straddle the two pivots at .7243 and .7237 until the report is released at 12:30 GMT.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
