U.S. Markets closed
  • S&P 500

    3,768.25
    -27.29 (-0.72%)
     
  • Dow 30

    30,814.26
    -177.24 (-0.57%)
     
  • Nasdaq

    12,998.50
    -114.10 (-0.87%)
     
  • Russell 2000

    2,123.20
    -32.15 (-1.49%)
     
  • Crude Oil

    52.04
    -1.53 (-2.86%)
     
  • Gold

    1,827.70
    -23.70 (-1.28%)
     
  • Silver

    24.83
    -0.97 (-3.77%)
     
  • EUR/USD

    1.2085
    -0.0079 (-0.6526%)
     
  • 10-Yr Bond

    1.0970
    -0.0320 (-2.83%)
     
  • Vix

    24.34
    +1.09 (+4.69%)
     
  • GBP/USD

    1.3583
    -0.0057 (-0.4143%)
     
  • USD/JPY

    103.8000
    -0.0420 (-0.0404%)
     
  • BTC-USD

    37,825.76
    +1,719.91 (+4.76%)
     
  • CMC Crypto 200

    701.93
    -33.21 (-4.52%)
     
  • FTSE 100

    6,735.71
    -66.25 (-0.97%)
     
  • Nikkei 225

    28,519.18
    -179.12 (-0.62%)
     

AUD/USD Forex Technical Analysis – Short-Covering Upside Target Zone Remains .7132 – .7158

James Hyerczyk
·2 min read

The Australian Dollar is easing lower on Thursday following a nearly 1% gain the previous session. That rally was fueled by a weaker U.S. Dollar, which plunged in reaction to optimism over a possible U.S. fiscal stimulus deal before the U.S. presidential election on November 3.

Gains were capped, however, by expectations of a rate cut and the start of an aggressive bond-buying campaign at the Reserve Bank of Australia’s monetary policy meeting also on November 3.

At 07:21 GMT, the AUD/USD is trading .7109, down 0.0073 or -0.10%.

Lower demand for riskier assets is also weighing on the Aussie with sellers responding to a more than 0.50% dip in the December E-mini S&P 500 Index in overnight trading.

Daily AUD/USD
Daily AUD/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7021 will reaffirm the downtrend. A move through .7243 will change the main trend to up.

The support is a longer-term retracement area at .7095 to .7020.

The minor range is .7243 to .7021. Its retracement zone at .7132 to .7158 is resistance. This zone stopped the buying on Wednesday.

The short-term range is .7414 to .7006. Its retracement zone at .7210 to .7258 is another potential upside target. This zone is controlling the near-term direction of the Forex pair.

Daily Swing Chart Technical Analysis

The early price action suggests the direction of the AUD/USD on Thursday is likely to be determined by trader reaction to the main 50% level at .7095.

Bullish Scenario

A sustained move over .7095 will indicate the presence of aggressive counter-trend buyers. This could trigger a rally into .7132 to .7158. Since the main trend is down, sellers could come in on a test of this area.

Overtaking .7158, however, could trigger an acceleration to the upside with .7210 the next likely upside target.

Bearish Scenario

A sustained move under .7095 will signal the presence of sellers. The first downside target is the pivot at .7079, followed by a support cluster at .7021 – .7020.

https://www.fxempire.com/markets/aud-usd/overview

This article was originally posted on FX Empire

More From FXEMPIRE: