The AUD/USD has increased sharply today and has managed to reach an important dynamic resistance, I’ve said yesterday that the rate could still increase because is still located above some important support levels (resistance has turned into support). The greenback has fallen as the USDX has plunged aggressively today, the index has dropped as much as 100.31 level, has touched a strong dynamic support, but remains under massive selling pressure.

The USDX could approach and reach the 100.00 psychological level in the coming days, the USD will be weakened by this drop. The Australian Dollar has received a helping hand from the Australian economic figures, the Home Loans rose by 0.9% in November, exceeding the 0.1% estimate, the indicator has increased significantly after the 0.6% drop from October. Moreover the New Motor Vechicle Sales rose by 0.3% after two decreasing months, the indicator has increased again and have lifted the Aussie.

The dollar remains under massive selling pressure on the short term, I’ve said even from December that we can have a correction on the USD because the currency has increased significantly because the FED was expected to hike the interest rate.

The price has edged higher today and has managed to hit the next upside obstacle, you can see that has touched the upper median line (uml) of the minor ascending pitchfork, has retreated a little, but maintains a bullish perspective. I’ve said yesterday that the rate could increase further after the retest of the broken 150% Fibonacci line (ascending dotted line), the rate has touched the dynamic support (resistance has turned into support), but has failed to close right on this line, signalling that he could climb much higher. I want to remind you that the major upside target remains at the upper median line (UML) of the major descending pitchfork, could still be attracted by the confluence area formed at the intersection between the upper median line (UML) with the lower median line of the major ascending pitchfork.

The price will be influenced by the fundamental factors, we could have some volatility in the coming days, so you should be careful.