The AUD/USD has increased today, but stay below the week high from 0.7688, has increased because the USDX has edged lower during the first part of the day, the rate has climbed above the yesterday’s high from 0.7677 level, but looks like is showing some exhaustion signs. The rate could increase further because the USD is somehow expected to resume the bearish movement, the greenback was punished by the poor economic figures, which have come in worse in the afternoon. The USD could resume the short term correction movement as the USD is losing altitude again after the intraday rebound.
The Aussie was lifted by the Australian Trade Balance indicator, which has come in better today, has increased from -1.89 to -1.23B in September and have beaten the -1.71B estimate, the trade deficit has reached the lowest level since March 2015. The AIG Services Index has increased from 48.9 to 50.5 points, signalling that the expansion has resumed in the services sector after 2-month contraction.
The rate continues to move sideways on the short term, but I hope that we’ll have a clear direction in the coming weeks because the rate is narrowing and a crucial breakout is expected.
The price has increased and maintain a bullish perspective for tomorrow, could still approach and reach the upper median line (uml) of the major descending pitchfork, the upper median line represents a very strong dynamic resistance. Looks like that the price is developing a triangle chart pattern, remains to see the breakout direction. I want to remind you that another rejection will force the rate to drop sharply towards the lower median line (LML) of the ascending pitchfork. On the other hand, the price will resume the medium term upside movement only if the rate will jump and will stabilize above the upper median line (uml) of the descending pitchfork, the perspective remains somehow bullish on the medium term as long as the rate is trading inside the ascending pitchfork’s body.
Remains to see what will happen when the rate will touch the upper median line (uml), we’ll have to be patient till we’ll have a fresh new trading signal.