Yahoo Finance AUD/USD Forex Technical Analysis – April 25, 2018 Forecast
The Australian Dollar is trading lower on Wednesday shortly before the U.S. opening. Yesterday was a bank holiday in Australia so today actually signals the resumption of a sell-off that began at .7812 on April 19.
At 0937 GMT, the AUD/USD is trading .7583, down 0.0020 or -0.26%.
The primary driver of the selling pressure is rising U.S. Treasury yields which is helping to tighten the interest rate differential between U.S. Government Bonds and Australian Government Bonds.
Daily Technical Analysis
The main trend is down according to the daily swing chart. If the downside momentum continues at its current pace, we could see a test of the December 8 bottom at .7501 on May 1.
The main range is .7501 to .8135. Its retracement zone at .7743 to .7818 is major resistance. Investor sentiment will remain bearish as long as the AUD/USD remains under this zone.
Daily Technical Forecast
The daily chart indicates there is nothing to stop the AUD/USD from reaching .7501 over the near-term. However, we are rapidly approaching the window of time for a closing price reversal bottom so short-sellers should start to pay attention to the price action on new lows.
On the upside, the nearest resistance is a steep downtrending angle. This angle, dropping at a rate of .004 from the .7812 top, comes in at .7652. Look for the selling to continue as long as the AUD/USD remains under this angle.
We’re looking for the selling pressure to continue on Wednesday, but the early price action suggests the selling pressure may be waning. This could be an early indication that the buying is greater than the selling at current price levels. Turning higher for the session will confirm this assessment.
This article was originally posted on FX Empire