The AUDUSD sell off has gone too fast in a very short period of time but, it was all due to the broad based dollar strength rather than the Aussie weakness. The 0.7144 swing low level and May’s low remains the next big hurdle for the AUDUSD and more likely than not we can expect a swing failure below this level. The 0.7270 followed by 0.7310 are the key resistance levels were we can expect a reaction lower.
The stochastic indicator also suggest AUDUSD sell off is overextended and a bounce is in cards. The Forex economic calendar will be very quiet due to the Christmas holiday and the year-end holidays. The low level of liquidity and trading activity means that the trading ranges will become more narrowed and they can only be interrupted by sudden spikes that should fade quickly.
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AUDUSD Weekly Forex Forecast – 26th to 30th Dec 2016 – Bullish
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