The AUD/USD has changed little today, continues to trade near the 0.7714 yesterday’s closing price, all he needs right now is a bullish spark after the yesterday’s breakout. The rate has jumped above a major dynamic resistance in the yesterday’s session, signalling that the bulls are in full control, but we still need a confirmation that the rate will resume the upside movement. We could have a great buying opportunity if the price will stabilize above the broken dynamic resistance.
We could have some action today on this pair after the United States economic data will be released, most likely the fundamental events will bring life on the AUD/USD.
The United States New Home Sales will be published by the Census Bureau and are expected to increase from 536K to 575K in January, could reach the highest level of the last two months, while the Revised UoM Consumer Sentiment may increase from 95.7 to 96.1 points in February, the economic indicator could increase again after the impressive decrease from January. The Revised UoM Inflation Expectations will be released as well, remains to see how the dollar will react after these releases.
The rate has increased today and is struggling to approach and reach the 0.7740 yesterday’s high, you can notice that has managed to jump above the outside sliding parallel line (descending dotted line). A valid breakout above the sliding line will attract even more buyers, which will lead the rate towards fresh new highs. Should increase further if will have enough energy to stabilize inside the ascending pitchfork’s body, we could have a buying opportunity if the rate will come to test and retest the confluence area formed between the lower median line (lml) of the major ascending pitchfork with the sliding line (descending dotted line).
The rate could find resistance at the 0.7755 horizontal resistance, will resume the upside movement if will have enough directional energy to ignore this major obstacle, you can see that the rate was rejected by this level in the last breakout attempts, so remains to see what will happen when will hit this target.