Good day forex traders and readers.

Welcome to the weekly edition of the AUD/USD forecast. I hope everyone had a wonderful Christmas holiday 🙂 Did you do any forex trading during this festive season?

In the previous AUD/USD forecast we noted that the 0.89 would probably be a strong support. Should bullish correction persist, we might consider a target of just above 0.9. Fundamental conditions remained weak.

Technical Analysis

Looking at the AUD/USD daily chart above we note that the currency pair failed to gain bullish momentum and slowly slipped lower throughout the trading week.

0.89 continues to play a pivotal role and the currency pair is now slightly below it. I would not rush to presume that this is an indication of a failure in support. I recommend more monitoring to see if the AUD/USD dips lower.

I have indicated possible immediate support and resistance levels in the chart.

Fundamental Analysis

The US economy reported better labour situations this week and this is yet again an indication of improving conditions. This will definitely boost the quantitative easing tapering case and hence sentiments. Compared to the Australian economy, where the situation is plagued with discussions of budget deficits and the uncertainty of commodities prices, investors are probably looking towards the US with more favor.

As the markets worldwide celebrate the end year festive, I urge everyone to trade with prudence. Low volume and liquidity conditions will be present.

Trade safely.

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AUD/USD Forecast December 30

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