AUD/USD Forecast – December 28-31

Looking for the latest outlook, for the current week? Check out the section:  AUD/USD Forecast

The Aussie had another week of weakness, but didn’t lose too much eventually. The upcoming week contains only one indicator, so this week’s outlook will focus mainly on the  technical  analysis for AUD/USD.

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

The only indicator this week is Private Sector Credit. This monthly indicator disappointed by being unchanged last month. It’s predicted to rise by 0.1% this time. It’s published on Thursday at 00:30 GMT. Now let’s move to the technicals:

AUD/USD Technical Analysis

The Aussie continued falling at the beginning of the week and bottomed at 0.8735. It later recovered and closed at 0.8840, above 0.88.

0.88 is the first support line, being a round number and a place that the Aussie paused on the way up. Further below, there’s the range of 0.8477 to 0.8520. The Aussie struggled to break 0.8477 and later didn’t fall below 0.8520.

Looking up, 0.8950 is a major resistance line. It worked as a support line and a resistance line many times in the past year.

Further above, 0.9090 is a minor resistance line, and so is 0.9210. Both served as support and resistance line recently, but they are now very weak. Support and resistance lines haven’t changed since last week’s outlook.

Even higher, 0.9327 is already a major resistance line. It served as such 3 times during October and November.

I continue being neutral on AUD/USD.

Although Australia is doing great,with a high interest rate and a strong job market, this is only enough to hold the US dollar from making serious gains, not enough for a rise of the Aussie.

Further reading on Forex Crunch:

• For a broad view of all the week’s major event in all currencies, read the forex weekly outlook.
• For the Euro, read the EUR/USD forecast.
• For the British Pound, check out the GBP/USD forecast.
• For USD/CAD, check out the Canadian dollar forecast.

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