AUD/USD Price Forecast December 15, 2017, Technical Analysis

I believe that the Australian dollar is going to continue to go higher after breaking above the 0.7650 level, but there are several areas above that will cause issues. The most obvious one for me is the 0.7750 level, an area that extends to the 0.78 handle. Beyond there, we have a very massive resistance barrier at the 0.80 level. I think the Australian dollar is going to continue to be very noisy, and quite frankly difficult to deal with. If gold markets rally though, that gives us an opportunity to pick up the Aussie dollar as the momentum should continue to the upside. Volatility will be an issue, but quite frankly I think that this offers quite a bit of a “buy the dips” attitude going forward, but in short doses.

On the other hand, if we break down below the 0.76 handle, then I think we will give back the gains, and continue to go much lower. The reality is that the Australian dollar is sensitive the risk appetite overall, so pay attention to that. If markets go higher in value over all, the Australian dollar typically will benefit. Beyond that, we should pay attention to what the US dollar is doing in general, as it is of course half of this equation. I think that the market is going to be very difficult at times, so therefore keeping a position size relatively small is probably the best thing that you can do as we fight through the significant amount of noise just above current levels.

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