AUD/USD Forex Technical Analysis – September 26, 2018 Forecast

The Australian Dollar is trading higher early Wednesday. Position-squaring and short-covering ahead of the Fed’s interest rate decision, monetary policy statement and press conference on Wednesday is helping to underpin the currency. Increased demand for risk is also helping. Aussie traders could also be following the New Zealand Dollar higher.

At 0403 GMT, the AUD/USD is trading .7272, up 0.0023 or +0.29%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at .7304 on September 21.

A trade through .7304 will negate the reversal top and signal a resumption of the uptrend.

The minor trend is also up. A trade through .7236 will change the minor trend to down. This will also signal a shift in momentum to down.

The major retracement zone resistance is .7285 to .7332. This zone stopped the rally on Friday at .7304.

The short-term range is .7304 to .7236. Its 50% level or pivot is at .7270. This level is controlling the direction of the AUD/USD today.

A pair of retracement zones at .7223 to .7204 and .7194 to .7169 is support.

Daily Technical Forecast

Based on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the short-term pivot at .7270.

Bullish Scenario

A sustained move over .7270 will indicate the presence of buyers. This could trigger a labored rally with Gann angle targets at .7274 and .7289. In between the angles is a major 50% level at .7285.

The trigger point for a potential acceleration to the upside is .7289. Taking out this angle with conviction could fuel a surge into a resistance cluster at .7304 to .7305.

Crossing to the strong side of the uptrending Gann angle at .7305 will put the AUD/USD in an extremely bullish position with .7332 the next major upside target.

Bearish Scenario

A sustained move under .7270 will signal the presence of sellers. The daily chart is wide open under this level so look for a possible spike down to .7244.

Crossing to the weak side of the angle at .7244 will put the AUD/USD in a bearish position with the next major target zone coming in at .7223 to .7204.