The Australian Dollar is edging lower on Thursday as investors react to the dovish tone of the Reserve Bank (RBA) from its minutes released earlier in the week and the hawkish tone of Federal Reserve in yesterday’s monetary policy statement.
At 09:40 GMT, the AUD/USD is trading .7603, down 0.0007 or -0.10%.
Simply stated, the RBA and the Fed are moving in opposite directions which is shifting the strength to the U.S. Dollar.
In other news, traders are showing little reaction to a stronger-than-expected employment change and better-than-expected unemployment rate.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. The trade through yesterday’s low earlier in the session signals a resumption of the downtrend. The next downside target is the April 13 main bottom at .7586, followed by the April 1 main bottom at .7532. A trade through .7776 will change the main trend to up.
The short-term range is .7532 to .7891. The AUD/USD is currently trading on the weak side of its retracement zone at .7669 to .7712, making it resistance.
The main range is .8007 to .7532. This zone is also resistance. Furthermore, it is controlling the longer-term direction of the Forex pair.
Daily Swing Chart Technical Forecast
The direction of the AUD/USD on Thursday is likely to be determined by trader reaction to .7610.
A sustained move under .7610 will indicate the presence of sellers. The first downside target is the main bottom at .7586. Taking out this level could trigger an acceleration into the April 1 main bottom at .7532.
A sustained move over .7610 will signal the presence of buyers. If this move is able to create enough upside momentum then look for a short-covering rally into the short-term Fibonacci level at .7669.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire