Forex AUD / USD Technical Analysis – Must clear .7243 to generate some countertrend momentum
The Australian dollar rose on Thursday, boosted by a weaker US dollar and a jump in iron ore prices.
The Aussie edged higher after the greenback weakened following the release of a disappointing weekly jobless claims report in the United States. Initial claims increased for a third straight week to 362,000 for the period ending Sept. 25, the data showed. Economists polled by Reuters predicted 335,000 jobless applicants for the past week.
AUD / USD on Thursday stood at 0.7225, up 0.0050 or + 0.69%.
The risk-sensitive Australian dollar strengthened on Thursday after falling 0.9% in the previous session, as iron ore prices rallied ahead of the Golden Week holiday in the country’s main trading destination. ‘Australia, China.
Technical analysis of the daily swing chart
The main trend is downward on the daily swing chart. A trade through .7170 will signal a resumption of the downtrend. A move through .7316 will change the main trend upward.
The minor range is 0.7316 to 0.7170. Its 50% level or pivot is 0.7243.
The short-term range is 0.7478 to 0.7170. Its 50% level is 0.7324.
The main resistance is the long term retracement area of ââ0.7379 to 0.7499.
Technical forecasts of the daily swing chart
The direction of AUD / USD on Friday will likely be determined by traders’ reaction to the pivot at .7243.
A sustained move below .7243 will indicate the presence of sellers. The first target on the downside is 0.7214. If that fails as support, look for the sell to eventually expand to 0.7170. This is a potential trigger for an acceleration towards the main August 20 bottom at 0.7106.
A sustained move above .7243 will signal the presence of buyers. If this move generates enough bullish momentum, look for a push to the main top at 0.7316. Removing this level will change the main uptrend, but sellers may come back after testing 0.7324.