AUD/USD Forecast December 18, 2017, Technical Analysis

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.