The AUD/USD has plunged today and has reached new lows, the greenback continued to dominate the currency market as the US dollar index has resumed the upside movement, the index has managed to reach fresh new highs, has increased as much as 100.55, could climb even higher in the coming period if will have enough energy to stabilize above the 100.00 psychological level. The Aussie has fallen drastically because the Australian data have disappointed in the morning, however the price was expected to drop further because has managed below an important short term support.
The Aussie has fallen as the Australian New Motor Vehicle Sales has decreased by 2.4% in October, has plunged versus the 2.4% growth from September, while the Wage Price Index has increased only by 0.4% in the third quarter, but less than the 0.5% estimate and less versus the 0.5% growth in the previous reading period. Moreover the MI leading Index has increased by 0.1% in October, actually has remained steady at 0.1% growth for the second month in October.
The USD continues to increase, even if the United States economic figures have failed to impress today, the PPI (Wholesale Prices) has increased only by 0.0% in October, less compared to the 0.3% forecast, while the Core PPI has fallen by 0.2% in October, has plunged versus the 0.2% prediction, the indicator has fallen again in the negative territory after 2-month growth. Unfortunately the Industrial Production indicator has disappointed again, has registered a 0.0% increase, but has failed to meet the 0.2% estimate, the Capacity Utilization Rate has come in worse than expected, was reported at 75.3% in October, less than the 75.5% prediction, has come also below the 75.4% in September.

AUDUSDd-1

The price has dropped sharply after the failure to make new highs, has failed once again to break above the median line (ML) of the ascending pitchfork, signalling that the rate is exhausted on the short term. As you can see on the Daly chart, the rate has touched the first downside target, personally I’ve expected to see the rate at this level, we have an important dynamic support at the lower median line (LML), remains to see if this support level will hold or the price will take out this obstacle. We have an important support area right below the LML, the 0.7440 level represents the sideways movement support, we have a strong confluence here at the intersection of the 50% Fibonacci line with the 0.7440 level and with the lower median line (lml) of the minor descending pitchfork. We’ll have to be patient to see what we’ll happen, right now we don’t have a trading opportunity, the rate will give birth to a larger decrease only if will stabilize below the 0.7440 and below the 50% Fibonacci line (descending line).

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