AUD/USD Forex Technical Analysis – December 14, 2017 Forecast

The AUD/USD is trading higher on Thursday, boosted by the Fed’s dovish outlook for interest rates in 2018 and the strong Australian Employment Change report. The rally does not mean traders believe the Reserve Bank is going to change its outlook for interest rates, but it does mean that investors had bet heavily on a more hawkish tone from the Fed.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up earlier today when buyers took out the previous top at .7653.

The short-term range is .7729 to .7501. The AUD/USD is currently trading on the strong side of its retracement zone at .7642 to .7615, making it a support zone.

The main range is .7897 to .7501. If the upside momentum continues today then buyers may make a run at its retracement zone at .7699 to .7746. We may see the return of sellers on a test of this zone especially if the next main top at .7729 stops the rally.

Daily Technical Forecast

Based on the current price at .7671 and the earlier price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at .7677.

Overtaking .7677 and sustaining the rally could create enough upside momentum to challenge the 50% level at .7699, followed by the main top at .7729 and the Fibonacci level at .7746.

A sustained move under .7671 will signal the presence of sellers. This could drive the AUD/USD back into the short-term Fib at .7642, followed by the short-term 50% level at .7615 and the uptrending Gann angle at .7581.

Basically, treat the downtrending Gann angle at .7677 like a pivot today.