AUD/USD dropped aggressively in the morning and touched fresh new lows. Price squeezed after the RBA decision to keep the Cash Rate unchanged at 1.50%. AUD/USD maintains a bearish perspective on the daily chart because is trapped under an important dynamic resistance (support turned into resistance).

Price dropped further, but continues to show some oversold signs, it looks like is losing the bearish momentum. AUD/USD squeezed as the USDX slipped lower in the last hours and is very close to erase the morning gains.

Is very important to see what will happen on the USDX in the upcoming hours because another false breakout above the 93.81 level followed by a minor drop will signal a drop towards the 92.49 major static support.

The Australian Commodity Prices increased only by 18.3% in the previous month, less versus the 20.8% growth in the former reading period, the ANZ Job Advertisements rose by 0.0%, less versus the 1.7% growth in the former reading period. Moreover, the Building Approvals surged by 0.4% in August, but less versus the 1.1% estimate, while the HIA New Home rose by 9.1% versus a 3.7% drop in the former reading period.

Remains to see what will bring the release of the United States Total Vehicle Sales indicator, which is expected to increase from 16.1M to 16.9M.

Price dropped and was almost to reach the 38.2% retracement level, but the bears weren’t able to keep the price down. You can see that has increased again and now is traded much above the 0.7807 static support. The perspective remains bearish as long as is trading below the median line (ml) of the descending pitchfork. However, another false breakdown below the 0.7807 level could signal another leg higher in the upcoming period, but another increase will be confirmed only after a valid breakout above the median line (ml) of the minor descending pitchfork.

A further drop will be confirmed only by a valid breakdown below the median line (ML) of the ascending pitchfork.