AUD/USD Price Forecast December 14, 2017, Technical Analysis

AUD/USD daily chart, December 14, 2017


The Australian dollar initially dipped during the day on Thursday, but found enough support to turn around Anna rally significantly, mainly upon the idea that tax reform may not get done in the United States. As we await the Federal Reserve Statement, the Wednesday session is tentatively bullish, but an overly hawkish Federal Reserve will send this market much lower, perhaps reaching towards the 0.75 level. Essentially, what we are looking at right now is whether the commodity currencies are starting the bottom? A breakdown below the 0.75 level would be catastrophic for the Australian dollar, sending us much lower. If we rally from here again, there is a lot of noise near the 0.7650 level, and most certainly at the 0.78 handle. Because of this, I think that we will remain choppy, even if we are somewhat bullish in the short term.

I would much rather trade the New Zealand dollar than the Australian dollar, as the 2 currencies tend to move in the same direction longer-term, but it seems as if the New Zealand dollar is a much clearer chart right now. Because of this, I would probably avoid this pair unless of course gold breaks out. Quite frankly, I like the idea of shorting AUD/NZD more than plain either one of these currencies against the US dollar. Overall though, I think the one thing you can count on is a lot of volatility, and by the time we get to the Thursday session, the Federal Reserve could have turned this entire thing around and we could be falling back towards the very important 0.75 handle.

Written by FX Empire