The pair has dropped aggressively and looks determined to hit new lows till the end of the day, the Aussie is under selling pressure again. Has managed to resume the yesterday’s bearish candle, the greenback has dragged the price lower as the USDX has managed to rebound and to recover a little after the yesterday’s massive drop.

The USDX has touched a dynamic support and now is fighting to increase, remains to see if the retreat is really completed, we still need a confirmation that the index will start another leg higher. Is premature to say that the dollar index will increase again, the dollar will appreciate versus its rivals if the index will climb again much above the 100.00 psychological level.

The Aussie has plunged even if the Australian MI Leading Index has increased by 0.1%, has increased again after the 0.1% drop in the previous reporting period, while the New Motor Vehicle Sales rose by 1.9%, has come in much better after the 2.7% drop in the previous reading period.

Technically, the dollar was too oversold to continue to drop on the short term, the AUD/USD could drop much deeper after another failure to jump above a major dynamic resistance.

Price has turned to the downside again and looks determined to hit fresh new lows, is trading within the minor descending pitchfork’s body, is approaching the first warning line (WL1) of the former ascending pitchfork, a breakdown is imminent.

Technically, a larger leg lower is favored if will have a valid breakdown below the warning line (WL1), could drop inside the minor descending pitchfork’s body, the major downside target remains at the median line (ML) of the major descending pitchfork, will approach this level only if the United States economic data will come very good in the upcoming months.

Right now only the fundamental factors will move the price higher again, today we have a very poor economic calendar, the pair is driven by the technical factors, so the current decrease is understandable, personally I’m waiting for a fresh trading signal, a confirmation that the price goes down is awaited.