AUD/USD Forecast December 13, 2012, Technical Analysis

The AUD/USD pair shot straight up during the Wednesday session as the Federal Reserve announced the expansion of its monetary policy. However, by the end of the day we saw the 1.04 level reject price again, and form a shooting star. This is the top of a recent consolidation area between the 1.02 and 1.06 levels, and as such this sets us up to start falling again. Because of this, we are willing to start selling on a break of the bottom of the scandal, but also recognize the fact that we may see above the 1.06 level that it would be a strongly bullish signal. With that being said, we are selling on a break lower, and buying on a daily close above the 1.06 level.