The rate increased significantly and jumped above some important levels. It remains to see if it will have enough energy to make a valid breakout. The AUD/USD increased as the USDX has dropped after the failure to take out a very strong dynamic resistance.

The pair remains under massive selling pressure, a rebound could be confirmed only after a valid breakout above another dynamic resistance.

The current rebound could be only temporary and the rate could drop again if the USDX will resume the upside movement. The USDX has managed to increase as much as 92.85 level in the yesterday’s trading session and a major dynamic resistance as expected and now is trading in the red.

USDX dropped after the amazing upside movement and now is pressuring two dynamic support levels. It remains to see if will have enough directional energy to jump above the 92.85 level and to reach the 93.00 psychological level.

The Aussie has received support from the Australian economic data, the Trade Balance was reported at 1.53B, much above the 0.68B estimate and versus the 1.35B in the former reading period, while the Building Approvals rose by 2.6% in March, beating the 1.1% estimate. The AIG Services Index was reported at 55.2 points, much below the 56.9 in the former reading period.

The AUD/USD has managed to jump above the median line (ML) of the major descending pitchfork, only a valid breakout above the first warning line (wl1) of the descending pitchfork will signal a further increase on the short term.

However, a drop below the median line (ML) followed by a retest will signal a further drop in the upcoming period. The next important downside target will be at the upper median line (uml) of the former minor descending pitchfork. Right now is very important to see what will really happen with the USDX.