The AUD/USD has increased significantly and has touched new highs on the short term, is trading much above the 0.7420 yesterday’s high. Has jumped much higher as the USD was punished by the USDX’s impressive drop, the index has plunged aggressively and now is trading below the 99.12 static support again.
The USDX could approach the 98.57 static support tomorrow, we’ll see how will react when will hit this level, we could still have a rebound if the mentioned static support will hold. The dollar index has developed a Falling Wedge pattern, but we have to wait for a confirmation, could start a larger upside movement if will escape from this chart pattern, but I want to remind you that a valid breakdown below the 98.57 static support will open the door for more declines in the upcoming period.
Technically, the USDX looks a little oversold, could move sideways on the short term before will start a significant move, the current drop was somehow expected because the index has touched a major dynamic resistance and has failed to break above it, actually has failed also to close on it and now is going down.
The Aussie has increased versus the greenback even if the Australian and the Chinese data have come in worse than expected, the Australian Home Loans have fallen by 0.5% in March, even if the specialists have expected to see a 0.0% growth, have dropped further after the 0.8% drop in the previous reporting period. The Chinese Industrial Production increased only by 6.5% in April, less versus the 7.0% estimate and versus the 7.6% growth in the previous reporting period, the Retail Sales surged by 10.7%, less versus the 10.8% estimate and versus the 10.9% in the former reading period. The Fixed Asset Investment increased by 8.9%, less versus the 9.1% estimate and versus the 9.2% growth in the previous reporting period.
The Empire State Manufacturing Index has fallen from 5.2 to -1.0, the economists had expected to see an increase to 7.2 points, while the NAHB Housing Market Index has surged from 68 to 70 points, exceeding the 68 estimate. Moreover the TIC Long-Term Purchases will be released later and could increase from 53.4B to 68.3B.

AUDUSDdaily-1

Price has increased sharply and has managed to escape from the minor descending pitchfork's body, could increase further if will stabilize above the upper median line (uml) of the descending pitchfork. Has found strong resistance right above the 0.7440 static resistance and now is trading right below the 0.7420 level. Could come down to test and retest the 0.7382 static support before will climb much higher on the short term. Another leg higher is favored after the failure to touch and retest the lower median line (lml) of the minor ascending pitchfork, could be attracted by the median line (ml). The major upside target is at the upper median line (UML) of the major descending pitchfork. We'll have a buying opportunity only if the rate will come down to retest the 0.7382 static support (resistance has turned into support). Will drop much deeper only if will escape from the ascending pitchfork's body, we don't have a selling opportunity right now.

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