AUD/USD Forex Technical Analysis – Monday’s Upside Target is .6435, Followed by .6460
The Australian Dollar, which is highly sensitive to risk sentiment because of Australia’s dependence on China and the global commodities trade, inched higher on Friday due to the light bank holiday volume, highlighting easing stress in global markets.
U.S. equity markets were closed on Friday, but perhaps helping to underpin the Aussie may have been a U.S. report showing consumer prices fell by the most in more than five years in March.
The Labor Department said on Friday its consumer price index dropped 0.4% last month amid a tumble in the cost of gasoline, and record decreases in hotel accommodations, apparel and airline ticket prices. Traders were looking for a 0.3% decline in the CPI in March.
Looking ahead on Monday, some traders are saying an agreement by oil producing nations to cut output by a record amount may sustain a recent bounce in stocks. If it does underpin global equities or helps to sustain the rally then look for the Australian Dollar to extend its gains.
On Friday, the AUD/USD settled at .6354, up 0.0015 or +0.24%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through .6368 will reaffirm the uptrend. The next main top target is .6685. A move through .5980 will change the main trend to down.
The main range is .6685 to .5510. Its retracement zone at .6236 to .6097 is major support. Holding above this zone will also help sustain the upside bias.
Daily Technical Forecast
Based on Friday’s close at .6354, the first upside target is a downtrending Gann angle at .6435. Overtaking this angle will indicate the buying is getting stronger. This could trigger a rally into a steep uptrending Gann angle at .6460.
Overcoming the angle at .6460 will put the AUD/USD in an extremely bullish position. This cold drive the Forex pair into a downtrending Gann angle at .6560. This is the last potential resistance angle before the .6685 main top.
On the downside, the first support is the main Fibonacci level at .6236. This is followed by a pair of uptrending Gann angles at .6220 and .6190.
We’re looking for the upside bias to continue and possibly accelerate over .6460. Our upside bias will begin to weaken if .6236 and probably change to down if .6097 fails as support.
This article was originally posted on FX Empire
