The AUD/USD reached fresh new lows today, but failed to stay below the 0.7799 last weeks’s low and near the 0.7794 today’s low. Price has squeezed a little, but you should know that the perspective remains bearish on the Daily chart as the pair is trapped below a dynamic resistance.

It moves somehow sideways on the short term, only a USDX’s further increase will force the currency pair to drop further in the upcoming period. The dollar index increased today and is almost to reach the 93.68 last week’s high. USDX should reach also the 93.81 horizontal resistance in the upcoming days, remains to see how will react when will hit this level, a valid breakout will announce a larger rebound in the upcoming weeks.

The Aussie plunged in the morning as the Australian AIG Manufacturing Index dropped from 59.8 points to 54.2 points in September, while the MI Inflation Gauge rose by 0.3%, beating the 0.1% growth in the former reading period.

Fundamentally, the AUD/USD should drop further as the United States data have come in better in the afternoon, the Final Manufacturing PMI increased from 53.0 to 53.1 points in the previous month, beating the 53.00 estimate, while the ISM Manufacturing PMI surged from 58.8 points to 60.8 points. Moreover, the Construction Spending rose by 0.5%, exceeding the 0.4% estimate, while the ISM Manufacturing Prices increased from 62.0 to 71.5 points.

Price decreased after the retest of the median line (ml) of the descending pitchfork, but failed to stay below the 0.7807 static support. This could the second false breakdown in the last days, which could announce a minor increase. However, you should know that perspective remains bearish as long as is trading below the median line (ml) of the descending pitchfork.

Technically is somehow expected to drop further in the upcoming period after has escaped from the ascending pitchfork’s body. The near-term major support is at the median line (ML) of the major ascending pitchfork, a failure to reach it will send the rate towards the upper median line (uml) of the minor descending pitchfork.