The Australian dollar is trading flat against the US dollar on Tuesday morning after hitting its highest level since September 14 in the previous session. The Aussie is supported by rising commodity prices and easing restrictions in the country’s most populous state, New South Wales.

At 04:28 GMT, the AUD / USD is trading at 0.7346, down 0.0001 or -0.02%.

Rising oil and iron ore prices are helping to push the Australian dollar higher against the US dollar, but some traders don’t expect the rally to last much longer with rising US Treasury yields before the Federal Reserve policy meeting on November 2-3 where central bank policymakers are expected to announce the start of the reduction in massive amounts of stimulus.

Daily AUD / USD

Technical analysis of the daily swing chart

The main trend is upward on the daily swing chart. A trade through .7373 will signal a resumption of the uptrend. A move through .7226 will change the main downtrend.

On the upside, long term resistance is the retracement area at 0.7379 to 0.7499.

On the downside, support is a series of retracement areas at .7324, .7299, .7271 and .7247.

Technical forecasts of the daily swing chart

The direction of the AUD / USD on Tuesday will likely be determined by the reaction of traders at .7347.

Bullish scenario

A sustained move above .7347 will indicate the presence of buyers. If this move generates enough bullish momentum, look for a rise from 0.7733 to 0.7379.

Removing .7379 will indicate that the buy gets stronger with .7410 the next target. This is a potential trigger point for an upward acceleration with 0.7478-0.7503 the next likely target area.

Bearish scenario

A sustained move below .7347 will signal the presence of sellers. The first target on the downside is the 50% level at 0.7324. If that fails, look for another break in .7299. This is the last potential support ahead of the main target zone down to 0.7271 to 0.7247.

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