AUD/USD forecast for the week of December 25, 2017, Technical Analysis

The Australian dollar has rallied a bit during the course of the week, showing signs of life again towards the bottom of a significant upward channel. I believe that the 0.75 level underneath continues to be very supportive, and the market should respect that level. I think that were going to go looking towards the 0.80 level above, which is a significant level on the longer-term charts. If we can break above the 0.80 level, the market should go to the 0.95 handle over the longer term. I think that gold needs to rally as well to shoot the Australian dollar to the upside.

If we broke down below the 0.75 handle, that would be very negative, perhaps send in the market back down to the 0.69 handle, the recent lows. In general, I believe that the market is going to be choppy and noisy, but it certainly seems as if it has an upper proclivity. I think that the uptrend line underneath is going to continue to offer plenty of support, unless of course the overall fundamentals collapse. I don’t think that we are going to break down the, so pullbacks could be thought of as buying opportunities for those who are willing to add slowly. We could break above the top of the channel, which would of course be the beginning of a parabolic move, and quite frankly I think that needs to happen eventually. The markets are going to be easy, but clearing the 0.80 level is of course one of the most vital levels to get past.

AUD/USD Video 25.12.17