AUD/USD Forecast December 21, 2012, Technical Analysis

The AUD/USD pair went back and forth during the Thursday session as the 1.05 level still is acting as resistance. The pair continues to find the area below current price as supportive, as well as the 1.04 handle. If we can get above the 1.05 handle however, I do believe that we will make a run towards the 1.06 level. Above their, we would have much more bullish action in this marketplace as we continue much higher.

Selling is going to be difficult as there are so many support levels below here, at least until you get to the 1.03 level. Selling is also going to be difficult unless there is something that comes across the wires that absolutely panics the market. If we do get a headline like that, it will probably come from Washington DC and under the headline “fiscal cliff”.