AUD/USD dropped a little today as the USDX has managed to rebound after the massive drop. USDX increased and resumed the Friday’s minor increase, but is premature to talk about a larger rebound because is located below some important resistance levels.

The currency pair increased significantly in the last weeks and climbed above the 0.7800 psychological level. It remains to see what will happen because we may have a corrective phase after the amazing rally. Right now will be better to stay away because we don’t have a trading opportunity, but I hope that I’l have one very soon.

The Aussie has taken a hit from the AIG Construction Index, which dropped from 57.8 to 52.8 points, signaling that the expansion has slowed down significantly. The economic indicator has reached the lowest level since May 2017.  The USD increased today only because the USDX has managed to rebound from the lows, the US Consumer Credit will be released later and is expected to drop from 20.5B to 17.8B, we’ll see if will have any impact.

Is very important to see what will really happen on the USDX in the upcoming days because the current increase could be only temporary if will fail to come back above the 93.00 psychological level. The rate failed to reach the median line (ml) of the blue ascending pitchfork, but it could still reach this target in the upcoming days if the dollar index will slip lower. A failure to reach this upside target will signal a corrective phase. Price jumped above the 150% Fibonacci line (descending dotted line) of the minor descending pitchfork, a false breakout will signal a drop at least till the upper median line (uml) of the minor descending pitchfork.

The rate could still be attracted also by the upper median line (UML) of the major black descending pitchfork after the failure to stabilize below the median line (ML).