AUD/USD Forex Technical Analysis – August 24, 2017 Forecast

The AUD/USD is trading lower on Thursday. The volume is below average, which may have triggered today’s volatile outside move.

In the U.S. on Thursday, investors will get the opportunity to react to the latest data on Weekly Unemployment Claims, Existing Home Sales and Mortgage Delinquencies. However, the main focus remains on Mario Draghi’s and Janet Yellen’s speeches at the Jackson Hole central bankers’ summit on Friday.

Technical Analysis

The main trend is down according to the daily swing chart. Momentum is also in a position to shift back to the downside.

A trade through .7962 will change the main trend to up. A move through .7807 will signal a resumption of the downtrend.

On the upside, the key resistance zone is .7936 to .7966. This zone stopped the rally last week at .7962.

The short-term range is .7807 to .7962. Its retracement zone at .7884 to .7866 is currently being tested.

On the downside, the major support is the 50% level at .7818.

Forecast

Based on the current price at .7895 and the earlier price action, the direction of the AUD/USD is likely to be determined by trader reaction to the short-term Fibonacci level at .7866 and the downtrending angle at .7912.

On the upside, the first target is the downtrending angle at .7912. This angle stopped the rally earlier. If buyers take out this angle then look for a possible acceleration to the upside with the next target angle coming in at .7937.

On the downside, the first target is the short-term 50% level at .7884. This is followed by the uptrending angle at .7877. The Fibonacci level at .7866 provided support earlier.

If .7866 fails as support then watch for a possible acceleration to the downside with the next target angle coming in at .7842.

Holding between .7912 and .7866 is likely to produce a two-sided trade especially since volume is below average.