AUD/USD Forecast December 18, 2017, Technical Analysis

The Australian dollar initially tried to rally during the trading session on Friday, but then turned around to break down below the 0.7650 level. I think ultimately, this market is going to go higher, especially based upon the weekly candle. However, the daily candle looks a bit suspicious, so I think a pullback is necessary.·FX Empire
Christopher Lewis
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The Australian dollar rallied initially during the trading session on Friday, but found the 0.77 area to be a bit too exhaustive, thereby turning around and falling towards the 0.7650 level. I think that the market forming a shooting star like candle for the day is of course a negative sign, but I also believe that the weekly candle shows just much bullish pressure there is underneath. Because of this, I think that the pullback at this point should be a nice buying opportunity, based upon a supportive candle or some type of bounce. If we break above the 0.77 level, I think we then go looking towards the 0.80 level above, which has been a very important level going back decades. At this point, I think the Australian dollar has changed its tune, as this past week has been so strong. If gold breaks above the $1300 level, that could be reason enough to send this market much higher as well.

As long as there’s a bit of a “risk on” attitude to the overall marketplace, I think that the Australian dollar will show signs of strength. The volatility will continue, but I believe that the longer-term uptrend line that is just below the 0.75 level has made its presence known, and that although things will be very noisy, I think we are looking at a positive couple of weeks at the very least. On a weekly close above the 0.80 level, this becomes a very bullish market.

AUD/USD Video 18.12.17

This article was originally posted on FX Empire

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