The AUD/USD pair is decreasing aggressively after the United States economic data was released, the US data have come mixed, but have boosted the greenback, the currency has started a bullish momentum versus all its counterparts. The pair could drop again because the price has failed to stabilize above the previous highs, the USDX has edged higher in the previous hours, pushing the USD much higher on the short term, we need to wait for a confirmation that the pair will start another leg lower, right now we have only some shy signals.
The Aussie has increased in the first par of the day, but the bears have taken the lead in this afternoon, the AUD has surged as the Chinese GDP has increased by 6.7%, actually has remained steady, has come better than the 6.6% estimate, while the Chinese Industrial Production has increase by 6.2% in June, exceeding the 5.9% estimate, the production has increased by 0.2% compared to the 6.0% growth from May. The Chinese Retail Sales have increased again, have jumped higher by 10.6%, has come surprisingly higher as the estimate was only 9.9%, moreover the New Loans have reached the 1380B level, this is the highest level of the last 5-months.
On the other hand, the greenback has surged aggressively as the United States economic data has lifted the currency, the CPI and the Core CPI have increased by 0.2%, matching expectations, while the Retail Sales rose by 0.6%, more compare to the 0.1% prediction, moreover the Core Reatil Sales have increased by 0.7%, exceeding the 0.4% estimate. The Industrial Production and the Capacity Utilization indicators have beat the expectations, have increased unexpectedly higher.
Unfortunately for the US dollar, the Prelim UoM Consumer Sentiment has decreased from 93.5 to 89.5 points, but the greenback wasn’t too impressed by this drop.

The price has found strong resistance at the 0.7637 level, has failed to close above this upside obstacle and now is approaching the median line of the ascending pitchfork, if you’ll look closer, you’ll notice that the rate was rejected by the first warning line (wl1) of the short descending pitchfork, the price has failed to retest the sliding parallel line (ascending dotted line), but personally I’ll wait till the rate will fall below the median line (ML) of the ascending pitchfork, as I’ve said higher, we need a confirmation that the rate will start a broader decrease, so we’ll have a seling opportunity if the pair will decrease below the median line (ML) and if will retest that level.

I’ve added the H4 chart to show you better the price movement, the rate is moving sideways, is challenging the Wdnesday’s low from 0.7576 level, a drop below this minor support will open the door for more declines in the coming week. Any jump above the 0.7637 horizontal resistance will attract more buyers, which will lead the rate much higher in the coming period, remains to see what will happen on the USDX, the index is trading right blow the 96.70 static resistance, a breakout above this level will push the USD much higher.

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