AUD/USD Forex Technical Analysis – October 22, 2018 Forecast

The Australian Dollar is trading mixed on Monday, reversing earlier steep losses on the back of a 4.5 percent gain in China’s major stock index. Buyers are also hoping for more stimulus from China, Australia’s biggest trading partner. Prices could continue to rise if today develops into a “risk-on” trading session in the U.S. although gains could be limited by rising Treasury yields which tend to make the U.S. Dollar a more attractive investment.

At 0654 GMT, the AUD/USD is trading .7120, up 0.0001 or +0.01%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through .7160 will change the main trend to up. A move through .7042 will signal a resumption of the downtrend.

The short-term range is .7042 to .7160. Its 50% level or pivot at .7101 is controlling the direction of the Forex pair today.

The main range is .7314 to .7042. If the trend changes to up then look for the rally to extend into its retracement zone at .7178 to .7210. This zone may act like resistance.

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 uptrending Gann angle at .7097.

A sustained move over .7097 will indicate the presence of buyers. Overcoming the 50% level at .7101 will indicate the buying is getting stronger. This could create the upside momentum needed to challenge the downtrending Gann angle at .7134. Since the main trend is down, look for sellers on the first test of this angle.

Overcoming the Gann angle at .7134 will indicate the buying is getting stronger. This could trigger a breakout into an uptrending Gann angle at .7152. Overtaking this angle will put the AUD/USD in a position to challenge .7160, followed by the 50% level at .7178.

A sustained move under .7097 will signal the presence of sellers. Taking out today’s earlier low at .7087 will indicate the selling is getting stronger. This could trigger a further break into the next uptrending Gann angle at .7070. This is the last potential support angle before the .7042 main bottom.