AUD/USD Price Forecast December 21, 2017, Technical Analysis

The Australian dollar did almost nothing during the day on Wednesday, as the 0.7650 level is likely the “fair value” for the short-term charts. I think that the markets are going to continue to struggle a bit when it comes to the Australian dollar, because gold isn’t exactly explosive. However, if gold pics oh, that should continue to push the Australian dollar to the upside, where I anticipate seeing quite a bit of resistance near the 0.7750 level. Alternately, if we break down below the 0.76 handle, we will probably test the 0.75 level below. I think that a breakdown below there would be somewhat catastrophic, and send this market down to the 0.7250 level. I believe that the market is going to continue to be very noisy, and directionless. I prefer to trade the New Zealand dollar against the US dollar, because it moves overall in the same direction as the Australian dollar, but the chart seemed to be quite a bit clearer these days.

I think that the next several sessions will probably be difficult to trade the Forex markets in general, including the Australian dollar as the market will suffer from a lack of volume, as traders are worried about Christmas and not so much the Australian dollar. As volume drives up, I suspect that this market is going to become more of a short-term back and forth type of situation. I believe in general, the Australian dollar will remain flat, with a somewhat soft bias over the longer term as well.

Economic Calendar