AUD/USD Forecast December 21, 2016, Technical Analysis

AUD/USD daily chart, December 21, 2016

The AUD/USD pair initially fell on Tuesday, but found enough support just above the 0.72 level to turn things around and form a hammer. The hammer of course is a very bullish sign, but even if we break above the top of the hammer for the day, I think that the market will then reach towards the 0.73 level above, offering quite a bit of resistance. I think a resistive candle in that area would be an excellent selling opportunity just as I believe a break down below the bottom of the hammer would be. With the gold markets falling overall, that should continue to put bearish pressure on the Australian dollar.

Written by FX Empire