The double bottom pattern established near the 0.7160 support level is indicative of a pause in the AUDUSD bearish trend. Also the stochastic indicator is showing a build up in bullish momentum which can sent AUDUSD to retest 0.7270, while a break and a close above this level will expose 0.7310. The low level of liquidity due to the holiday season can be the catalyst for further range or at worse we can see some sudden spikes in price that should quickly fade away.
The only major risk event is the Non Farm Payrolls scheduled to be released in the last day of the week. The general market consensus is for a flat reading of only 175k new jobs added during December the only downside risks come from the Unemployment rate which is expected to inch higher from 4.6% up to 4.7% which can be bearish for the US Dollar.
Previous AUDUSD Weekly Forex Forecast
AUDUSD Weekly Forex Forecast – 2nd to 6th Jan 2017 – Bearish
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