If I look at AUD/USD in isolation, I see a classic consolidation following a strong bullish move – and that could point to another burst higher. However, seeing as AUD/USD only marginally closed above the December 4th high, NZD/USD failed to close above its own cycle high, USD/CHF failed to close beneath its respective cycle low and USD/JPY only marginally closed beneath its 200-day MA – I see early signs of exhaustion for US dollar weakness. Add n the fact that we’re approaching the weekend and that can prompt profit taking from US dollar bears, upside potential for AUD/USD may be limited heading into the weekend. ... (full story)