Yahoo Finance AUD/USD Forex Technical Analysis – Another Secondary Lower Top Formed at .7916
The AUD/USD is under pressure early Friday amid worries that the Trump administration is seeking to reduce the trade deficit with China by $100 billion per year. Reports are surfacing that the White House is looking to implement more tariffs against China. The Aussie is trading weaker because it is strongly correlated with China-sensitive assets such as commodities.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. Momentum has also shifted to the downside, following a nine day rally. A new minor top has been formed at .7916.
The main range is .7988 to .7712. Its retracement zone is .7850 to .7883. The AUD/USD is now trading on the weak side of this zone, giving it a downside bias.
The short-term range is .7712 to .7916. The Aussie is currently trading inside its retracement zone at .7814 to .7790.
The major long-term retracement zone is .7819 to .7743. The AUD/USD is also trading inside this zone. The Forex pair could collapse on a sustained move under .7743.
Daily Swing Chart Technical Forecast
Based on the current price at .7797, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the Fibonacci level at .7790.
Regaining .7790 will signal the return of buyers. This could fuel the start of a short-covering rally. If the move gains momentum then look for the rally to possibly extend into .7814 to .7818.
A sustained move under .7790 will indicate the presence of sellers. This could trigger an acceleration into the Fibonacci level at .7790. This is another trigger point for an acceleration into the next major Fib level at .7743 over the near-term. This is followed by .7712.
This article was originally posted on FX Empire
