The AUD/USD increased significantly in the morning and recovered a little after the yesterday’s impressive drop. Is trading in the green right now after the rejection from a dynamic support level. The rebound could be only temporary if the USDX will resume the yesterday’s bullish momentum.
AUD/USD maintains a bullish perspective on the short term because is still trapped in the green zone. However, the rate showed some exhaustion signs on the Daily chart, but we still need a confirmation that will start another leg lower.
The AUD/USD increased somehow surprisingly today as the Australian data have come in mixed, while the Chinese figures have disappointed. The Australian Employment Change surged from 29.3K to 54.2K, beating the 17.5K estimate, while the Unemployment Rate remains steady at 5.6%. The MI Inflation Expectations rose by 3.2%, less versus the 4.2% growth in the former reading period.
The Aussie ignored the Chinese Industrial Production release, the indicator increased only by 6.0%, less versus the 6.6% estimate.
Price was rejected by the lower median line (lml) of the minor ascending pitchfork and now tries to climb higher again. Personally, I’m expecting to see a further drop on this pair, a valid breakdown below the lower median line (lml) of the ascending pitchfork will open the door for more declines in the upcoming period.
A major drop will be validated after a breakdown and a retest of the lower median line (LML) of the major ascending pitchfork.
