AUD/USD Forex Technical Analysis – December 20, 2017 Forecast

The AUD/USD is trading higher on Monday. Volume is light and the market is trading inside last Friday’s range for the third straight session. This indicates investor indecision and impending volatility.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7694 will signal a resumption of the uptrend.

The Aussie is not in a position to change the trend to down, but it is up 8 days from its last bottom which puts it in the window of time for a near-term correction.

The main range is .7897 to .7501. Its retracement zone at .7699 to .7746 is the primary upside target and resistance.

The short-term range is .7501 to .7694. The market is currently trying to establish support over its retracement zone at .7642 to .7615.

Daily Technical Forecast

Based on the early trade, the direction of the AUD/USD is likely to be determined by trader reaction to the uptrending Gann angle at .7661 and the downtrending Gann angle at .7657.

A sustained move over .7661 will indicate the presence of buyers. This could generate the upside momentum needed to challenge .7694 then .7699. The latter is the trigger point for an acceleration into .7729 then .7746.

A sustained move under .7657 will signal the presence of sellers with the first target .7642. This price is the trigger point for an acceleration into .7615.