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AUD/USD Forex Technical Analysis – Strengthens Over .7790, Weakens Under .7769

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·2 min read
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The Australian Dollar is trading higher early Tuesday, recovering from an unexpected setback the previous session. The catalyst behind the strength is the weaker U.S. Dollar which is being pressured by renewed expectations that the United States will not hike interest rates anytime soon.

At 05:35 GMT, the AUD/USD is trading .7789, up 0.0019 or +0.25%.

In other news, the Reserve Bank of Australia (RBA) said it would pay “close attention” to economic data and conditions in financial markets when deciding whether to roll over its yield-target maturity and undertake further quantitative easing.

The Minutes of its May policy meeting showed Australia’s central bank wants annual wage growth to more than double to its highest in over a decade to meet its inflation goals, a tough task that underlines how long rates could remain near zero.

Daily AUD/USD
Daily AUD/USD

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7688 will change the main trend to down. A move through .7891 will reaffirm the uptrend.

The short-term range is .7532 to .7891. Its retracement zone at .7711 to .7669 is support. This zone stopped the selling at .7688 on May 13.

The main range is .8007 to .7532. The AUD/USD is currently testing its retracement zone at .7769 to .7826. This zone is controlling the near-term direction of the Forex pair.

The minor range is .7891 to .7688. The AUD/USD is also testing its pivot at .7790.

Daily Swing Chart Technical Forecast

The direction of the AUD/USD on Tuesday is likely to be determined by trader reaction to .7790 and .7769.

Bullish Scenario

A sustained move over .7790 will indicate the presence of buyers. If this move generates enough upside momentum then look for the rally to possibly extend into the main Fibonacci level at .7826.

Bearish Scenario

A sustained move under .7769 will signal the presence of sellers. This could lead to a break into a minor 50% level at .7743. Buyers could come in on the first test of this level. If it fails then look for the selling to possibly extend into the short-term retracement zone at .7711 to .7669.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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