The AUD/USD has resumed the bearish movement and has managed to delete the yesterday’s minor gains, is trading in the red and looks determined to reach new lows. Has fallen much below the 0.7544 previous low, is very heavy right now and could extend the sell-off.
The USD remains strong versus the Aussie as the US dollar index continues to stay above the 100.56 broken resistance, a further increase will force the dollar to appreciate versus all its rivals. The USDX maintains a bullish perspective on the short term, could increase further after the minor consolidation, we have an important upside obstacle at the 101.22 level, should approach and reach this level if the United States economic data will come better.
The AUD/USD is on a declining path, the current corrective phase is natural after a false breakout, technically should drop much deeper in the upcoming weeks, but remains to see what will happen and if the USDX will have enough energy to resume the minor rebound.
The Australian Dollar has lost significant ground versus the greenback also because the Chinese Caixin Services PMI dropped from 52.6 points to 52.2 points despite that the traders have expected to see an increase to 53.2 points. On the other hand, the United States dollar stays higher as the Unemployment Claims have fallen more than expected, the Initial Claims were reported at 234K in the previous week, much below the 251K forecast and much below 259K jobs in the previous reporting period. Moreover the Challenger Job Cuts fallen by 2.0%, less versus the 40.0% drop in the previous reporting period.
Tomorrow we may have some volatility in the United States session, the fundamental factors could take the lead and should drive the price, remains to see the direction. Will be better to keep an eye on the economic calendar as the US is to release high impact data, the figures will bring life on the currency market. The USD could appreciate versus all its rivals if the economic numbers will come in better than expected.

AUDUSDdaily

Price goes down as expected, the downside movement is natural after another false breakout above the sliding parallel line (descending dotted line) and after the retest of the lower median line (lml) of the blue ascending pitchfork. Has slipped again inside the major descending pitchfork's body and now is approaching the warning line (wl1) of the former ascending pitchfork, where he could find temporary support. Could drop also to approach the median line (ml) of the minor ascending pitchfork, actually could be attracted by this line in the upcoming days.

AUDUSDh4

I've drawn a minor descending pitchfork on the H4 chart to catch the downside movement, the perspective is bearish as long as the rate is trading inside the. Could come to retest the upper median line (uml) before will resume the downward movement, technically is expected to approach and reach the median line (ml), this scenario will happen only if the USDX will climb above the 101.00 psychological level.

One thought on “AUD/USD on the way down April 06, 2017”

  1. Dalmas Ngetich - FOREX.TODAY says:

    Thanks for this. Aud rally needs to end.

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