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Price drops on the short term and should reach the first warning line (wl1) of the ascending pitchfork. Actually, it could be attracted by the confluence area formed at the intersection between the warning line (wl1) with the upside line of the ascending channel.

The perspective remains bullish on the daily chart despite the current drop, only a drop below the 250% Fibonacci line will confirm a broader drop.

The currency pair dropped further and reached another target, we'll see how will react now because a rejection will send the rate higher in the upcoming days. Technically, it should drop much deeper in the upcoming period, so the bias remains bearish. AUD/USD resumed the bearish momentum as the USDX stays higher and tries to approach the 93.30 yesterday's high.

The dollar index closed the yesterday's session right above the 93.00 psychological level, signaling that the bulls are strong on the short term. USDX has finally managed to jump in the green territory, is located above a dynamic support (resistance turned into support) and could approach new highs after a minor consolidation.

You should know that the US session is expected to bring a high volatility as the United States is to release high impact data.

Price accelerate the sell-off after the impressive breakdown below the lower median line (LML) of the major ascending pitchfork. Right now is pressuring the median line (ml) of the minor descending pitchfork, a valid breakdown will confirm a further drop in the upcoming period. Support can be found at the 0.7835 static support as well. The major downside target will be at the first warning line (WL1) of the ascending pitchfork, it could also be attracted by the lower median line (lml) of the minor descending pitchfork if the USDX will jump much higher in the upcoming weeks.

Price goes down after the minor retreat and is seems poised to approach and reach the next major downside target from the lower median line (LML) of the ascending pitchfork. I’ve drawn a black descending pitchfork hoping that I’ll catch a downside movement, the rate could be attracted by the confluence area formed between the LML with the median line (ml) of the descending pitchfork.

The EUR/CHF dropped further and resumed the bearish momentum. It has touched fresh new lows, but the downside momentum was paused by the confluence area formed between the upper median line (uml) of the minor ascending pitchfork with the fourth warning line (WL4). Technically, it should drop further after the failure to stay above the dynamic obstacles.

The currency pair dropped further today and touched new lows. It has dropped as much as 131.74 level, but failed to stay there and now is trading above the 132.3o level. EUR/JPY is into a corrective phase on the short term, but this could end up as the Nikkei stock index could jump much higher again. Price has squeezed in the last hours because the JP225 has managed to increase and to stay above the 20320 static support (resistance turned into support).

The Nikkie consolidates the latest gains and should resume the upside movement. Technically, it is expected to climb towards new peaks after the breakout above the 20320 previous high. I've said in the last articles that it could come down the 20058 horizontal support, but could increase further if the USDX will increase as well.

Price has dropped significantly since Friday and ignored the support from the median line (ml) of the black ascending pitchfork. Now is pressuring the sliding parallel line (sl) of the major red ascending pitchfork. A valid breakdown will confirm a further drop towards the upper median line (UML) of the major red ascending pitchfork. I've drawn a Rising Wedge pattern on the daily chart, but this needs confirmation before we take action.

However, it could find support at the downside line (up sloping red line) of the potential Rising Wedge pattern.

We'll have a larger drop only after a valid breakdown from the Rising Wedge and below the upper median line (UML) of the major ascending pitchfork.

Yellen Says Fed Needs Gradual Rate Hike Despite Soft Prices. The U.S. dollar was underpinned by remarks from Fed Chairperson Yellen on the need to continue with rate hikes, she also clarified that it wouldn't make sense to keep monetary policy unchanged until inflation reaches the actual 2% target, adding that the FOMC should be careful about moving too slowly. The dollar's index stood at 93.07 in early Wednesday after it reached a high of 93.286 the previous day, its highest in almost a month.

Euro Hampered by Political Worries in Europe. The euro still struggles weighed down by political uncertainty following the German election at weekend. The euro weakened against other currencies on Tuesday, hitting a five-week low of $1.1756 US Dollars, a 10-week low of 0.87545 British pound and two-week low of 1.14075 Swiss franc.

Morneau Says Canada Can Do Well with Higher Dollar. Even with the dip in crude oil, the positively-correlated Loonie managed to hold its ground and pocket a few pips during Canadian FM Bill Morneau's speech. Morneau assured that the economy could continue to do well even with the Loonie's current exchange rate levels and higher interest rates. Morneau explained that the currency's strength is a reflection of the economy's strong performance and even with the BOC's recent hikes, interest rates remain at historically low levels.

Risk Appetite Still Shaky. North Korea and the Donald seem to have paused from hurling harsh words at each other for the time being, allowing U.S. equity indices to score a few gains from the tech sector bounce.

Gold Prices Steady After Hawkish Yellen Comments. Gold prices were steady early Wednesday after falling over 1.3 percent in the previous session on hawkish comments from U.S. Federal Reserve Chair Janet Yellen. Spot gold rose to $1,296.00 per ounce.

Oil Prices Fall from 26-Month High. Oil prices have ended in red after investors took profits following a rally to 26-month highs spurred largely by threats from Turkey to cut crude exports from Iraq's Kurdistan region. On Tuesday, the market was also under pressure ahead of weekly US oil inventory data that was expected to show a fourth straight week of crude builds.

Watch Out Today for:

15:45 pm GMT: CAD BoC Governor Poloz Speech

20:00 pm GMT: NZD RBNZ Interest Rate Decision

For the 24 hours to 23:00 GMT, the AUD declined 0.68% against the USD and closed at 0.7883.

LME Copper prices rose 0.1% or $7.0/MT to $6423.0/MT. Aluminium prices declined 0.6% or $12.0/MT to $2116.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7874, with the AUD trading 0.11% lower against the USD from yesterday's close.

Earlier today, in China, Australia's largest trading partner, industrial profits registered a rise of 24.0% on an annual basis in August, following a gain of 16.5% in the previous month.

The pair is expected to find support at 0.7839, and a fall through could take it to the next support level of 0.7804. The pair is expected to find its first resistance at 0.7929, and a rise through could take it to the next resistance level of 0.7984.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the EUR declined 0.57% against the USD and closed at 1.1788.

In economic news, Germany's import price index remained flat on a monthly basis in August, compared to market consensus for an advance of 0.1%. The index had registered a drop of 0.4% in the previous month.

The US Dollar advanced against its major peers, after remarks from the US Federal Reserve (Fed) Chair, Janet Yellen, strengthened the case of a December interest rate hike.

The Fed Chief admitted that officials may have misjudged the labour market strength and the fundamental forces driving inflation and that downward pressures on inflation could prove to be unexpectedly persistent. However, Yellen outlined the need to continue gradual interest rate hikes and warned that policymakers should also be wary of moving too gradual to avoid the risk of overheating of the economy.

Separately, data released in the US showed that the CB consumer confidence index dropped more-than-expected to a level of 119.8 in September, from a revised five-month high level of 120.4 in the prior month, as concerns over the impact of Hurricanes Harvey and Irma weighed on investor sentiment.

Meanwhile, markets were anticipating the index to drop to a level of 120.0. Further, the nation's new home sales unexpectedly eased 3.4% on monthly basis to a level of 560.0K in August, dipping to an eight-month low, as Hurricanes Harvey and Irma affected sales. Market participants had envisaged for a rise to a level of 585.0K, after recording a revised reading of 580.0K in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.1788, with the EUR trading flat against the USD from yesterday's close.

The pair is expected to find support at 1.1743, and a fall through could take it to the next support level of 1.1699. The pair is expected to find its first resistance at 1.1847, and a rise through could take it to the next resistance level of 1.1907.

Amid no macroeconomic releases in the Euro-zone today, investors will draw their attention to the US flash durable goods orders and pending home sales data, both for August, along with mortgage applications data, all slated to release later in the day.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the GBP declined 0.22% against the USD and closed at 1.3452.

On the data front, Britain's BBA mortgage approvals climbed to a six-month high level of 41.81K in August, boosting optimism over the state of the nation's housing market. Markets had expected mortgage approvals to advance to a level of 41.70K, after recording a revised level of 41.64K in the previous month.

In the Asian session, at GMT0300, the pair is trading at 1.3438, with the GBP trading 0.1% lower against the USD from yesterday's close.

The pair is expected to find support at 1.3394, and a fall through could take it to the next support level of 1.335. The pair is expected to find its first resistance at 1.3498, and a rise through could take it to the next resistance level of 1.3558.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the USD rose 0.48% against the JPY and closed at 112.28.

In the Asian session, at GMT0300, the pair is trading at 112.41, with the USD trading 0.12% higher against the JPY from yesterday’s close.

The pair is expected to find support at 111.76, and a fall through could take it to the next support level of 111.11. The pair is expected to find its first resistance at 112.8, and a rise through could take it to the next resistance level of 113.19.

Going ahead, traders will focus on Japan’s final machine tool orders data for August, due to release in a while.

The currency pair is trading above its 20 Hr and 50 Hr moving averages..