As you already know, the USD has managed to increase in the last days after the FOMC has decided to hike the Federal Funds Rate with 0.25%. The dollar will increase further versus all its rivals if the USDX will resume the upside movement. The index has managed to jump much higher in the yesterday’s trading session as the United States data have come in better than expected.

USDX is pressuring the upside 50% Fibonacci line of the ascending pitchfork, a valid breakout will confirm a further increase. You should know that we have a very strong dynamic resistance at the inside sliding line (SL) of the major descending pitchfork. So, we need a valid breakout above this line as well if the rate wants to reach at least the upper median line (UML).

AUD/USD plunged after the USDX’s impressive rally and now it has reached the median line (ML) again. As you can see, it has retested the upside 50% Fibonacci line of the descending pitchfork and the downtrend line, but it has failed to make a valid breakout above these upside obstacles. Price has also failed to stay above the median line (ml) of the minor ascending pitchfork and now is has escaped from this pitchfork and it has reached the 150% Fibonacci line.

A valid breakdown through the confluence are formed between the ML with the 150% Fibonacci line will accelerate the sell-off. The median line (ML) represents a very strong dynamic support, you can see that the rate has failed to stabilize below it in the past.  Support can be found at the inside sliding line (sl) from below the ML.

NZD/USD is trading in the red and seems too heavy to be stopped on the Daily chart. It has dropped aggressively after the failure to reach and retest the inside sliding line (sl) of the ascending pitchfork. It has slipped below the outside sliding parallel line (sl1) of the ascending pitchfork and now it could drop towards the UML again. Actually, the rate could be attracted by the confluence area formed between the UML with the 150% Fibonacci line of the ascending pitchfork. This scenario will take shape only if the USDX will resume the upside movement.