Price decreased a little in the fresh start of the week, but maintains a bullish perspective because is located in the buyer’s territory. Could increase further after the minor decrease as the USDX is under immense selling pressure on the Daily chart.

USDX increased today and is fighting hard to recover after the Friday’s massive drop, right now we don’t have any reversal signal. The index could drop towards the 92.49 major static support in the upcoming days, where he could find a strong demand.

We need an accumulation movement on the dollar index before we can say that we’ll have a bounce back, so is premature to announce another leg higher.

The Aussie decreased as the Australian and Chinese data have failed to impress, the Private Sector Credit rose by 0.6%, beating the 0.4% estimate and the 0.4% growth in the former reading period, while the HIA New Home Sales dropped by 6.9% in June, this is the highest drop since November 2016, the MI Inflation Gauge rose by 0.1%.

The Chinese figures have come in worse versus the previous reading period, the Manufacturing PMI decreased from 51.7 to 51.4 points, has come below the 51.5 points estimate, signaling that the expansion has slowed down, while the Non-Manufacturing PMI dropped from 54.9 to 54.5 points.

Price decreased after the Friday’s rebound, could come to retest the upper median line (UML) of the ascending pitchfork. The Perspective remains bullish as long as the rate stays above the upper median line (UML), we may have a buying opportunity if the support (resistance has turned into support) will hold.

However, a minor decrease is favored after the amazing rally, but could appear only if the rate will drop under the UML and if will retest this obstacle. This scenario could take shape only if the USDX will have enough energy to climb higher in the upcoming period. Right now looks a little exhausted on the short term after the failure to close on the 150% Fibonacci line (ascending dotted line).