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AUD/USD Forex Technical Analysis – May 17, 2018 Forecast

James Hyerczyk

The Australian Dollar is trading higher shortly after the U.S. opening. The currency is being supported by an upbeat Employment Report.

At 1154 GMT, the AUD/USD is trading .7524, up 0.0009 or +0.12%.

The latest employment report showed Australia’s economy added 22,600 new jobs during the month of April, up from a small contraction in the number of new jobs created back in March, which was ahead of the market consensus for 19,800 new jobs. This was the highest number of jobs to have been created in any month during 2018 to date and has left employment growth running at 2.7% annually.

However, on the downside, the Aussie unemployment rate edged higher by 10 basis points to 5.6% as a result of an increase in the so called participation rate.

Daily AUD/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. Momentum may have shifted to the upside. A trade through .7566 will change the main trend to up. A move through .7412 will signal a resumption of the downtrend.

The minor trend is up. A new higher minor bottom has formed at .7447. A trade through .7566 will reaffirm the minor uptrend. A move through .7447 will change the minor trend to down.

The trade is also being controlled by a series of retracement levels. A short-term range is .7412 to .7566. Traders are trying to establish support at its retracement zone at .7489 to .7471.

Another short-term range is .7566 to .7447. Its 50% level or pivot at .7506 is also controlling the direction of the market today.

The main range is .7812 to .7412. If the trend changes to up then its retracement zone at .7612 to .7659 will become the primary upside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the AUD/USD will be determined by trader reaction to the short-term pivot at .7506.

A sustained move over .7506 will indicate the presence of buyers. If this move generates enough upside momentum, we could see a surge into .7566.

A sustained move under .7506 will signal the presence of sellers. This could drive the AUD/USD into the 50% level at .7489, the Fibonacci level at .7471 and the minor bottom at .7447.

This article was originally posted on FX Empire

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