The currency pair increased today and tries to jump higher and to recover after the last significant drop. It remains to see what will really happen because the USDX seems undecided on the short term. The dollar index has shown some exhaustion signs on the Daily chart and failed to approach and reach some very important resistance levels. The next hours could be crucial for the USD because a USDX’s drop will force the currency to lose significant ground versus all its rivals.

The USDX is fighting hard to climb above a dynamic resistance (support has turned into resistance) and to resume the last day’s upside movement.

The Aussie rebounded and increased significantly before the RBA has published the Cash Rate and before the RBA Rate Statement. The interest rate was left unchanged at 1.50%, matching expectations, but the AUD bulls weren’t too satisfied.

The ANZ Job Advertisements rose by 0.0% after the 0.4% drop in the former reading period, while the AIG Manufacturing Index increased from 57.5 to 63.1 points signaling a further expansion. It remains to see how it will react after the US Total Vehicle Sales data will be released, the indicator is expected to decrease from 17.1M to 16.9M.

The USD has managed to increase a little in the last hours as the dollar index has erased the morning losses. You can see that it has found a temporary support at the warning line (wl1), but the perspective remains bearish after the retest of the lower median line (lml) of the blue ascending pitchfork. Technically, it is somehow expected to drop towards the median line (ML) of the major black descending pitchfork in the upcoming period after the failure to retest the upper median line (UML).

The perspective remains bearish as long as the rate remains under the second warning line (wl2) of the minor black descending pitchfork.