FX.co ★ AUD/USD forecast for December 29, 2020

The AUD/USD pair edged lower on Monday but currently battles around 0.7600 and keeps a recovery move from 0.7570 to post mild gains. Strong RSI conditions indicate that the market is not overbought which keeps buyers hopeful of the ascending trend-line. Short-term horizontal resistance guards immediate upside, while eight-week-old trend line offers nearby key support.

The pair has approached its yearly high, having peaked at 0.7620 yesterday, but was unable to retain gains. The Australian dollar was weighed down by gold prices as the commodity trimmed intraday gains on the back of risk appetite.

The AUD/USD pair is technically neutral in the near-term while retaining its long-term bullish potential. The 4-hour chart shows that the pair is hovering above the primary trend-line support. Technical indicators retraced from intraday highs but pared their slides around their midlines. The pair may resume its rise above a yearly high of 0.7640.