AUD/USD Price Forecast December 22, 2017, Technical Analysis

The Australian dollar went sideways initially during the trading session on Thursday, but then shot higher as the US GDP numbers came in lower than anticipated. This have the US dollar falling, and that of course provided a little bit of a boost to the Aussie dollar during the day, but at the margin, this pair is trading a low-volume during the day as traders are worried about holidays as opposed to currency markets. I believe that if we can break down below the 0.7625 level the market will drop to the 0.75 handle. I think that the Australian dollar will struggle to go higher to the upside, and as a result it’s likely that the sellers will return given enough time. I believe it’s probably easier to short this market at higher levels, but I believe in the meantime you are probably better off to simply sit on the sidelines and wait for volumes to return.

There are several resistance barriers above that will get in the way, so having said that I think it’s probably difficult to take too much faith in a move higher, and I would be hard-pressed to buy this pair. However, we obviously don’t have much in the way of a shorting opportunity either, as the market has been trying to rally a bit. If we can roll over, the market is likely to fall quickly, but it’s likely that we won’t see that until after New Year’s Day. In the meantime, this is going to be a difficult market.

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