AUD/USD Forex Technical Analysis – February 2, 2017 Forecast

The AUD/USD surged early Thursday after the government reported better than expected trade data. According to the Australian Bureau of Statistics, Australia’s trade surplus for December skyrocketed to a record $3.5 billion, or a 72 percent jump from the previous month. Traders said strong demand for commodities was the catalyst behind the move.

Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when the market traded through the previous top at .7608. The new swing bottom is .7511. A trade through this level will turn the main trend to down.

The main range is .7777 to .7159. Its retracement zone is .7541 to .7468. This zone is new support. Holding above this zone gives the market a strong upside bias.

Forecast

Based on the early price action, the upside momentum is strong. If the buying continues then look for the rally to extend into the uptrending angle at .7699. Overtaking this angle will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the next target the November 8 top at .7777.

On the downside, the key support angle is .7591. This angle provided support earlier in the session and has been guiding the market higher since January 27.