AUD/USD Forecast for the Week of December 26, 2011, Technical Analysis

AUD/USD recaptured much of the losses from the week before as the parity level continued to offer support. The light volume for the week seems to have perhaps skewed the results as well, but it should be noted that the pair itself seems to be tightening up into a wedge. This suggests that there is a move coming soon, and we are to wait for it to start in order to buy or sell. The pair does have a lot of support down to 0.95, so any short trades will be difficult. The long side doesn’t look pretty either, as there are a lot of headlines out there waiting to happen that would push this pair much lower. Because of this, the Aussie isn’t a market we like presently for longer term trades.