AUD/USD Forecast December 21, 2016, Technical Analysis

The AUD/USD pair initially fell on Tuesday, but found enough support just above the 0.72 level to turn things around and form a hammer. The hammer of course is a very bullish sign, but even if we break above the top of the hammer for the day, I think that the market will then reach towards the 0.73 level above, offering quite a bit of resistance. I think a resistive candle in that area would be an excellent selling opportunity just as I believe a break down below the bottom of the hammer would be. With the gold markets falling overall, that should continue to put bearish pressure on the Australian dollar.