AUD/USD Forex Technical Analysis – Walking Down Weekly Gann Angles at .7124 and .7117

The AUD/USD closed lower last week and with enough downside momentum to possibly lead to an extension of the selling pressure this week. The weekly chart shows the Forex pair is vulnerable to the downside with the next major target the February 9, 2016 main bottom at .6973. The early price action so far this week suggests investors are being a little cautious.

Weekly Technical Analysis

The main trend is down according to the weekly swing chart. The market is in no position to change the main trend to up, however, it is in the window of time for a potentially bullish closing price reversal bottom.

Weekly Technical Forecast

Based on last week’s close at .7106, the direction of the AUD/USD this week is likely to be determined by trader reaction to a pair of downtrending Gann angles at .7124 and .7117.

A sustained move under .7117 will signal the presence of sellers. This Gann angle is moving down at a rate of .004 per week. It has been guiding the Forex pair lower for 14 weeks. If the Aussie continues to follow this angle lower, then it’s likely to eventually lead to a test of .6973, perhaps in late November.

A sustained move over .7124 this week will indicate the presence of buyers. However, don’t expect an acceleration to the upside unless the buying is strong enough to take out last week’s high at .7235. This could launch a rally into the next downtrending Gann angle at .7304.

Basically, we’re looking for an upside bias if buyers can sustain a rally over .7124. Look for the downside bias to continue if sellers can sustain a move under .7117. With the main trend down and momentum clearly to the downside, the way of lead resistance is down with .6973 the next major target.