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The Australian dollar ended lower on Friday, but in the range of the previous session. This decision suggests investor indecision and imminent volatility. Last week's price hike also indicates that the three-week rally may be losing steam. Friday's break was likely fueled by higher US Treasury yields.
The news on Thursday and Friday was responsible for the volatility at the end of the week. Reports that the United States and China are willing to offer concessions to end the trade dispute have been the catalysts for the lateral reduction of trade.
On Friday, the AUD / USD pair is set at 0.7165, down from 0.0028 or -0.39%. For the week, the currency pair was down 0.0051 or -0.70%.
Daily technical badysis
The main trend is down according to the daily chart. The momentum created by the six-day rally has also slowed. An exchange through .7236 will change the main upward trend.
The minor trend is also down. An exchange through .7146 will indicate that the sale becomes stronger. An exchange through .7226 will change the minor trend upward. It will also go up.
The main beach is from .7394 to .6764. Its range of 0.7153 to 0.7079 controls the short-term direction of the AUD / USD. Holding on top of this area will help to generate an upward bias. It should also be considered a support.
The new short-term range is .6764 to .7236. If the selling pressure continues, its 0.7000 to 0.66944 retracement area will become the main downside target.
Daily technical forecasts
Based on last week's price action and Friday's closing at 0.7165, the direction of the AUD / USD pair on Monday will likely be determined by the traders' reaction to the main Fibonacci level at 0, 7153.
Bullish scenario
A sustained move above 0.7153 would indicate the presence of buyers. This could lead to a laborious rally with a series of minor resistance levels at 0.7222, 0.7226 and 0.7236.
Deleting .7236 will change the main trend. This should lead to a quick move into the next main summit at .7247. This price is the trigger point of an upward acceleration with the next major target, the main peak, at .7394.
Bearish scenario
The deletion of 0.7153 will place the AUD / USD in a weak position, while a transaction through .7146 should trigger a downward acceleration with a primary target of 50% at 0.77079.
We could see a technical rebound on the .7079 first test, but if it fails, expect another acceleration in the minor level of 50% to .7000.
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