The AUD/USD increased and resumed the yesterday’s bullish candle, but remains to see if this will represent the start of another leg higher or this will be only a minor rebound. Price increases as the USD is punished by the USDX’s drop, the index plunged in the last hours and seems too heavy to be stopped on the short term.

The dollar index moves down on the mixed United States data, but you should be careful tonight because it could turn to the upside again if the FOMC Meeting Minutes will suggest a rate hike on December 13. USDX has broken through a very important confluence area today, a valid breakdown will accelerate the sell-off. I’ve said in the yesterday’s reports that the dollar index could increase on the short term if will have enough energy to stabilize above the 93.81 static resistance.

The Aussie received support from the Australian data in the early morning, the Construction Work Done  increased by 15.7% in the third quarter, even if the traders have expected to see a 2.1% drop, the indicator has come in better versus the 9.8% growth in the former reading period, while the MI Leading Index increased by 0.1%, matching the 0.1% growth in the former reading period.

Price has found support at the sliding parallel line (SL) and now has managed to climb above the lower median line (LML) of the blue ascending pitchfork. It could hit the median line (ML) of the major black descending pitchfork. A retest followed by a drop will signal that the downward movement is not completed yet  and we may see the rate at fresh new lows. We may have a selling opportunity if the rate will slip below the LML again and if will retest the Ml and the median line (ml) of the minor descending pitchfork.

The perspective remains bearish on the short term as long as the rate is located below the median line (ml) of the minor descending pitchfork.