AUD/USD rallied and erased the yesterday’s losses, remains to see what will really happen in the upcoming hours because right now we have another breakout attempt. Price remains bullish on the daily chart, we don’t have any reversal sign because is still located in the buyer’s territory.

Is very important to see what will happen on the USDX as well, is located near some crucial support and resistance levels, but we have to be patient to see the breakout direction. Only an impressive rally will force the AUD/USD to turn to the downside again.

The Aussie increased in the morning ahead of the RBA, even if the AIG Services Index decreased from 56.4 to 53.0 points, while the Current Account dropped from -4.8B to -9.6B, more versus the -7.9B estimate. Has received support from the Chinese Caixin Services PMI, which has increased from 51.5 to 52.9 points, beating the 51.8 estimate, has signaled that the expansion has continued.

AUD/USD stays higher as the Reserve Bank of Australia has decided to maintain the Cash Rate steady at 1.50%, matching expectations. The interest rate hasn’t changed since August 2016, most likely will remain on hold in the upcoming months.

Price jumped above the upper median line (uml) of the minor descending pitchfork and is very close to hit the upper median line (UML) of the major ascending pitchfork, where he could find resistance again. Is trading in the green after the failure to breakdown below the sliding line (SL), only a valid breakdown would have signaled a drop in the upcoming period.

Maintains a bullish perspective as long as is trading within the black ascending pitchfork’s body. Could move sideways on the short term before we’ll have a clear direction. The upside movement will resume only if the rate will close above the 0.8065 swing high.

I’ve drawn a major black descending pitchfork to catch a potential downside move, price could come back to retest this level to confirm this pitchfork, so a failure to jump and to stabilize above the UML and above the black sloping line will signal a major drop.