AUD/USD reached fresh new lows in the morning, but has squeezed in the last hours. Price is still under selling pressure on the Daily chart after the breakdown below a dynamic support. We’ll see what will happen in the upcoming period because has reached a very strong dynamic support. USD will drag the rate down if the dollar index will have enough energy to climb higher after the massive drop.

The USDX dropped below the 93.81 major static support, but has failed to close below this obstacle and now seems determined to increase again. USDX is pressuring a broken dynamic support (support turned into resistance) and the 94.00 psychological level. The index will increase further if will close the day above the 94.00 psychological level.

The Australian data have come in mixed today, the Unemployment Rate has dropped from 5.5% to 5.4% in the previous month, even if the traders have expected to see a 5.5% rate, but unfortunately, the Employment Change was reported at 3.7K, less versus the 17.8K estimate and compared to the 26.6K in the former reading period.

Moreover, the MI Inflation Expectations rose by 3.7% in October, less versus the 4.3% in the former reading period.

Price plunged much below the median line (ML) of the major black descending pitchfork signaling that the bears are in full control. Price slipped below the lower median line (LML) of the blue ascending pitchfork today, but failed to stay there and now is trading in the green. You can see that has retested the broken median line (ML) and now seems undecided.

Is very important to see what will happen with the USDX in the upcoming days because a further increase will send the AUD/USD tumbling. A valid breakdown below the lower median line (LML) will bring us a great selling opportunity.

We have an important downside target at the lower median line of the minor descending pitchfork, only a failure to approach and reach this will confirm an oversold.