The AUD/USD has dropped in the morning, but the buyers have stepped in again and have leaded the rate higher again, even if the US dollar index has managed new highs. Price has managed to climb above the 0.7674 yesterday’s high, but remains to see what will happen in the coming days as the rate is located right below a major dynamic resistance.
The pair has increased despite that the USDX has climbed above the 100.14 yesterday’s high, but index was stopped by the 100.24 level and now has slipped lower. The USDX maintains a bullish perspective on the short term after the false breakdown below the 99.12 static support, right now is located above the 100.10 level, should increase further if will have enough power to stay above the 99.84 static support and above the 100.00 psychological level.
The Aussie has lost significant ground in the morning as despite the Australian HIA New Home Sales indicator’s release, which has increased by 0.2% in February, has surged again after the 2.2% drop in the previous reporting period. The pair has slipped lower in the three hours, the dollar has managed to increase a little even if the United States data have come in mixed.
The rate is trading right below the sliding line (descending dotted line), which represents a very strong dynamic resistance, you can see that has rejected the price in previous weeks. Has increased and has erased the morning losses, we’ll have to wait to see what will happen because he could increase further after the false breakout below the upper median line (UML) of the major descending pitchfork. However a reject from the sliding line will bring us a good selling opportunity, you can see that I’ve added a minor descending pitchfork to catch a potential downside movement.
Personally I’m waiting to see how will react when will touch the confluence area formed at the intersection between the sliding line (descending dotted line) with the upper median line (uml) of the minor descending pitchfork, we could sell if a rejection occurs, or we could buy if we’ll have a valid breakout.