Forex Trading: Is the AUD/USD drop completed? May 17, 2018

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AUD/USD rallied in the yesterday’s trading session and could invalidate a further drop. It has come back above some important resistance levels. A retest of these levels could send the rate higher in the upcoming period.

Price dropped in the last hours and has erased the morning gains. We’ll see what will happen in the upcoming days because it seems a little exhausted on the Daily chart and could try to recover a little after the massive drop.

The rate has found a bottom at 0.7411 level and now is trading at the 0.7500 psychological level. It could increase if it will stabilize above this level.

The Aussie increased in the morning on the mixed Australian data, it has received support from the Employment Change which it has jumped to 22.6K, beating the 19.8K estimate. Unfortunately, the Unemployment Rate has increased from 5.5% to 5.6%, even if the specialists have expected to see the rate steady at 5.5%.

The USD is still strong as the USDX stays higher despite the poor Unemployment Claims, the indicator increased to 222K in the previous week, much above the 216K estimate.

The USDX continues to pressure the 150% Fibonacci line and the warning line (wl1) of the ascending pitchfork. It remains to see what will happen because a rejection will send the rate towards the ML of the major blue ascending pitchfork.

Is very important for the price to stabilize above the ML because another drop below it will signal a corrective phase.

The rate was rejected by the sliding parallel line (SL) of the descending pitchfork and now has come back above the median line (ml) and above the warning line (wl1). It could climb towards the second warning line (wl2) if it will stabilize above these lines. Only another drop below the median line (ml) followed by a retest will signal a further drop and a breakdown below the sliding line (sl).

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