AUD/USD plunged and resumed the bearish momentum as the USD received a helping hand from the United States data. Price reached a major dynamic obstacle, where has found temporary support again. Is trading in the red as the dollar index stays above the 93.50 psychological level, the index will climb towards new highs if the United States data will come in line with expectations or better. You should keep an eye on the economic calendar in the afternoon to see what will drive the rate.
Aussie dropped on the poor Chinese and Australian numbers, but has squeezed a little in the last hours. The Chinese CPI rose by 1.4% in July, less compared to the 1.5% estimate, while the PPI surged only by 5.5%, despite that the traders have expected to see a 5.6% growth. Moreover, the Australian Home Loans surged by 0.5%, less compared to the 1.5% estimate and versus the 1.1% growth in the former reading period, while the Westpac Consumer Sentiment dropped by 1.2% in August from the 0.4% in July.
Price dropped and touched the lower median line (LML) of the major ascending pitchfork, where has found strong demand. Has broken below the 0.7874 static support, but wasn’t able to stay there as the dollar index looks ready to decrease a little again.
AUD/USD dropped also below the median line (ml) of the minor ascending pitchfork, but right now we have only a false breakdown. The current decrease is natural after the false breakout above the 50% Fibonacci line (ascending dotted line) and above the warning line (wl1) of the minor ascending pitchfork.
You can see that I’ve drawn a minor descending pitchfork to catch a potential downside movement, price retested the median line and now could try to reach the lower median line of the mentioned support levels will cave in.
