The Australian Dollar is up on Friday, in a week that has seen it bouncing back, after plunging to .7096 on October 7. Investor sentiment is helping to drive prices higher despite confusion surrounding a new potential U.S. fiscal stimulus package.
Solid economic news from China is also helping to underpin the Aussie after a private survey showed services sector activity in China expanded in September. The Caixin/Markit services Purchasing Managers’ Index for September came in at 54.8.
At 02:45 GMT, the AUD/USD is trading .7181, up 0.0014 or +0.20%.
Investors also continue to focus on ongoing developments regarding potential new fiscal stimulus stateside with House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin possibly renewing talks about a broad coronavirus stimulus plan.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through .7209 will change the main trend to up. A move through .7096 will reaffirm the downtrend.
The minor trend is down. This is controlling the momentum. The minor trend will also turn up on a move over .7209.
The main support is the long-term 50% level at .7096.
The minor range is .7209 to .7096. Its 50% level at .7152 is new support. Holding above this level is helping to generate some upside momentum.
The short-term range is .7414 to .7006. Its retracement level at .7210 to .7258 is the primary upside target. It’s also controlling the near-term direction of the Forex pair.
Daily Swing Chart Technical Forecast
Based on the early trade on Friday, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the pivot at .7152.
A sustained move over .7152 will indicate the presence of buyers. If this can create enough upside momentum then look for the rally to possibly extend into the resistance cluster at .7209 – .7210. The latter is a potential trigger point for an acceleration to the upside with the next major target a Fibonacci level at .7258.
A sustained move under .7152 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the support cluster at .7096.
For a look at all of today’s economic events, check out our economic calendar.
Read More: AUD/USD Forex Technical Analysis – Main Trend Changes to Up on Trade Through