AUD/USD Forex Technical Analysis – March 4, 2019 Forecast

James Hyerczyk
Updated

The Australian Dollar is trading lower on Monday in reaction to another round of rising U.S. Treasury yields. The widening of the spread between U.S. Government bond yields and Australian Government bond yields is helping to drive up demand for the U.S. Dollar. Reports that the United States and China are closing in on a trade deal is having little effect on the currency today.

At 08:34 GMT, the AUD/USD is trading .7082, up 0.0002 or +0.02%.

Daily AUD/USD
Daily AUD/USD

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade though the last main bottom at .7053 will reaffirm the downtrend. A move through .7207 will change the main trend to up.

The minor trend is also down. A move through .7070 will reaffirm the downtrend and downside momentum.

Currently, the AUD/USD is trading inside a major retracement zone at .7079 to .7153. This zone is controlling the near-term direction of the Forex pair.

The short-term range is .6764 to .7296. Its retracement zone at .7030 to .6967 is the next downside objective.

Daily Technical Forecast

Based on the early price action, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the main 50% level at .7079.

Bullish Scenario

A sustained move over .7079 will indicate evidence of counter-trend buyers. If this move creates enough upside momentum then look for a potential rally into a steep downtrending Gann angle at .7137. Since the main trend is down, look for sellers to come in on a test of this angle. Overcoming it will indicate the buying is getting stronger with the main Fibonacci level at .7153 the next likely upside target.

Bearish Scenario

A sustained move under .7079 will signal the presence of sellers. The first target is the minor bottom at .7070, followed closely by the minor bottom at .7053 and the short-term 50% level at .7030.

Today’s mixed economic data is having a minimal effect on prices. Traders could also be squaring positions ahead of Tuesday’s release of the latest Reserve Bank of Australia Rate Statement.

This article was originally posted on FX Empire

More From FXEMPIRE: