AUD/USD Forex Technical Analysis – August 10, 2014 Forecast …
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The AUD/USD weakened to a two-month low on Friday after the Reserve Bank of Australia released its economic outlook. Although the RBA’s main concern is about the high dollar, traders decided to focus on rising geopolitical tensions that drove global investors from high-yielding assets and into safe haven currencies.
Short-sellers couldn’t keep the pressure on the AUD/USD the entire session, however. After the initial reaction to the news that President Obama had authorized strategic airstrikes against Iraqi militants, the sell orders dried up, triggering a short-covering rally into the close, setting up the possibility of a follow-through rally on Monday.
The main trend is down on the daily chart, but on Friday, traders found support on the last angle before a series of bottoms from early June to late May at .9229, .9210 and .9208. Today, the support angle comes in at .9244, slightly above Friday’s low at .9238.
The strong close has put the market in a position to overcome another uptrending angle at .9281. Taking out Friday’s high at .9286 will confirm the closing price reversal chart pattern. This could trigger the start of a 2 to 3 day rally, or a move into a short-term retracement zone at .9306 to .9321.
Daily AUD/USD
The daily chart indicates the AUD/USD could accelerate to the upside with a downtrending angle at .9349, an uptrending angle at .9353 and a major 50% level at .9356 a potential resistance cluster.
Investor reaction to .9386 should set the tone for the session. Since the main trend is down, watch for some selling on the first test of .9306 to .9321. Taking out .9321 with conviction should extend the rally.
A failure to take out or sustain a move over .9386 will indicate that sellers are still in control. Taking out .9238 will negate the reversal bottom and could trigger more selling pressure into .9229 to .9208.
Watch the price action and order flow at .9286 early in the session.
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AUD/USD Forex Technical Analysis – August 10, 2014 Forecast …
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