AUD/USD rallied and resumed the last three day’s increase and looks motivated to climb much higher in the upcoming days. Price jumped above important resistance levels, but the breakout still needs a confirmation before we can say that we’ll really have an increase in the upcoming period.
Price increased as the USD is still sluggish on the short term, the USDX decreased after the yesterday’s minor increase and could still approach the 92.49 static support in the upcoming days.
Technically, the USDX could start another upside movement very soon because the traders are still optimistic that the FED will hike the rate in December.
You should be careful in the afternoon as the US data will shake the markets and will bring a high volatility.
The Aussie increased significantly even if the Chinese data have disappointed, the Trade Balance has come in worse than expected, the surplus has decreased from 287B to 193B, has come in much below the 266B estimate, while the USD-Denominated Trade Balance decreased from 42.0B to 28.5B, even if the traders have expected to see a drop only to 38.4B.
We’ll see how the rate will react after the US data will be sent to public, the inflation and the retail sales indicators are expected to increase significantly and could boost the greenback.
The AUD/USD jumped much above the median line (ml) of the minor descending pitchfork and now tries to approach and reach the 0.7874 previous high.
We’ll have a buying opportunity only if will come back to test and retest the 0.7807 static support and the median line (ML) of the major ascending pitchfork. Resistance can be found at the 23.6% retracement level and higher at the upper median line (uml) of the minor descending pitchfork. You should know that the perspective is somehow bearish on the short term as long as is trading within the descending pitchfork. Could retest also the 50% Fibonacci line (ascending dotted line), where he may find strong resistance.