AUD/USD Forex Technical Analysis – December 9, 2016 Forecast

The AUD/USD is trading slightly higher in a lackluster trade. For the sixth out of seventh day, the Forex pair straddled a key 50% level. This indicates investor indecision and impending volatility.

Technical Analysis

The main trend is up according to the daily swing chart. However, the closing price reversal top at .7507 has temporarily stopped the upside momentum.

A trade through .7507 will signal a resumption of the uptrend. A trade through .7369 will change the main trend to down with the next target .7311.

The major range is .7145 to .7777. The market has been straddling its 50% level at .7461. This price is controlling the longer-term direction of the market. Its Fibonacci level at .7368 was support last week.

The short-term range is .7777 to .7311. Its retracement zone at .7544 to .7599 is the primary upside target.

Forecast

The AUD/USD is straddling the major 50% level at .7461. The nearest support angle is at .7451. The nearest uptrending resistance angle is .7489.

Look for a sideways trade as long as the market remains inside the .7451 to .7489 range.

A break out over .7489 could trigger a move into .7507. This is followed by a resistance cluster at .7541 to .7544.

If .7451 fails as support then look for a break into the next angle at .7429. This price is the trigger point for an acceleration to the downside with the next target area .7386 to .7381.

Look for an upside bias to develop on a sustained move over .7489 and a downside bias under .7451.