Technical Analysis of AUD/USD Forex

After the U.S. consumer prices increased, the Australian Dollar gained some ground against the U.S. Dollar on Friday. It happened in line with expectations in the previous month as investors bet that the actual number might not change the speed of interest rate hikes. Those were investors who had been expecting considerably higher inflation. The price action effectively reflected a rough trade in U.S. Treasury yields.

On Friday, the AUD/USD stood at 0.7173, up 0.0026 or +0.36%. The ETF closed at $71.14, up $0.17 or +0.24%.

On Friday, the Labor Department reported that the November consumer price index increased 6.9%, the fastest rate since the beginning of 1983. Dow Jones surveyed economists who expected the index to climb 6.6%, while some investors worried about an even higher number.

Technical Analysis

According to the daily swing chart, the primary trend is down, while momentum seems higher. A trade through 0.6994 will signal a downtrend’s resumption, while a move through 0.7432 will change the main direction to go up.

The minor trend seems up now, controlling the momentum. On Thursday, the minor trend changed and increased when buyers took out 0.7174. A trade through 0.7188 will affirm the growth.

The first minor range seems to be 0.7372 to 0.6994. Its 50% level at 0.7183 is going through the testing. The second minor range is 0.7432 to 0.6994. Its 50% level at 0.7213 seems to be the next target level.

The short-term range is 0.7557 to 0.6994. The new minor range is 0.6994 to 0.7188. Its 50% level at 0.7091 is the nearest support.

Short-Term Outlook

Most likely, the trader’s reaction to 0.7183 will determine the direction of the AUD/USD on Monday. A sustained move over 0.7182 will indicate the buyers’ presence. Taking out 0.7188 will show the buying is getting firmer, which could trigger a quick movement into 0.7213.

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