The Australian dollar caught higher Monday after last week’s steep sales. The catalyst behind today’s strength is increased demand for assets with higher risk. However, the rally is a bit cautious as investors express concern over the rising tensions between the United States and China. Stronger gold and crude oil prices also help strengthen the commodity-linked currency.
Kl. 09:02 GMT is trading AUD / USD 0.6444, up 0.0028 or + 0.43%.
Daily technical analysis of the swing diagram
The main trend is following the daily swing chart, but the momentum, on the other hand, is lower with the formation of the secondary lower peak of .6561.
The main trend is changing to down on a trade through .6373. Moving through the .6570 will signal a resurgence of the uptrend.
The first smaller range is .6570 to .6373. Its 50% level at .6472 is resistance.
The other smaller range is .6254 to .6570. Its 50% level of .6412 acts as support.
The main range is .6685 to .5510. Its retracement zone of .6236 to .6097 is great support. It also controls the long-term direction of AUD / USD.
Daily technical weather fluctuation
Based on the early price measure, the direction of AUD / USD for the rest of the meeting on Monday is likely to be determined by the trader’s response to the 50% levels of .6472 and .6412.
A sustained move above .6472 will indicate the presence of buyers. If the momentum starts to build upward, we could see a short-term test of .6561 to .6570.
A sustained move below .6412 will signal the presence of sellers. This can lead to a quick test of .6402. If that level fails, look for the sellers to possibly extend into the next scalp of .6373. This is a potential trigger point for downside acceleration.