The AUD/USD has increased sharply in the morning and has ignored a dynamic resistance. Price is trading in the buyer’s territory, but we still need a confirmation because this could be a false breakout if the USDX will start an amazing rally.
The Aussie increased even if the AIG Services Index dropped from 53.0 to 52.1 points. The greenback drops ahead of the US high impact data release, this could be crucial for the USD. The ADP Non-Farm Employment Change could drop from 237K to 131K in the previous months, while the ISM Non-Manufacturing PMI is expected to increase from 55.3 to 55.5 points.
We may have a high volatility in the US trading session, so you should be careful not to ruin your account. The FED Chair will speak tonight, but remains to see if will give some clues regarding the monetary policy.
The rate is trading in the green and tries to recover after the corrective phase. I’ve said in the last day’s that the AUD/USD seems a little oversold, but I’ve said that only a valid breakout above the median line (ml) of the descending pitchfork will confirm a minor increase on the short term. The failure to stay below the median line (ml) of the descending pitchfork will send the rate towards the upper median line (uml) of the descending pitchfork.
Technically, it could e attracted by the confluence area formed between the LML with the upper median line (uml) of the descending pitchfork. This scenario will take shape only if the US data will disappoint in the afternoon.
