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AUD/USD  showed some movement but ended the week unchanged, as the pair closed at 0.7164.  Ahead of the Christmas holiday, there  is only one event next week.  Here is an outlook on the major market-movers and an updated technical analysis for AUD/USD.  

In the US, the  historic rate hike was not dovish as the Fed plans additional hikes in 2016. The RBA minutes were optimistic in tone, helping the Aussie hold  its own against the greenback last week.

[do action=”autoupdate” tag=”AUDUSDUpdate”/]

AUD/USD graph with support and resistance lines on it. Click to enlarge:

AUDUSD Daily Chart Dec. 21-Dec. 25

  1. CB Leading Index: Wednesday, 23:00.  This indicator is comprised of 7 indicators, but is considered a minor index since most of the data has already been released. The index has not impressed, posting 3 declines in the past 4 readings. Will we see a positive reading in the October report?

* All times are GMT.

AUD/USD Technical Analysis

AUD/USD started the week at 0.7164 and  quickly touched a  high of 0.7283, putting pressure on resistance at 0.7284. The pair then  reversed directions  and dropped to low of 0.7096.  AUD/USD  closed the week at 0.7164, just above support at 0.7160 (discussed last week).

Live chart of AUD/USD: [do action=”tradingviews” pair=”AUDUSD” interval=”60″/]

Technical lines from top to bottom:

0.7533 has  remained  intact since July.

0.7440 capped the pair in August and remains key resistance.

0.7284 held firm as the pair pushed upwards before retracting.

0.7160 was tested but remains a weak support line.

0.7100 is next.

The round number of 0.70 worked as a cushion in August and is  a strong  support level.

0.6899 has provided support since September.

0.6775 is the final support level for now.

I  am  bearish on AUD/USD

Last week’s rate hike by the Fed, the first in almost 10 years, is a vote of confidence in the US economy and bullish for the US dollar. With monetary divergence sharpening, the Australian dollar will be under more pressure.

Our latest podcast is titled The Fed Awakens, and what’s next?

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