Price plunges on the daily chart and looks unstoppable as the USD received a helping hand from the USDX’s minor rebound. USDX climbed above the 93.00 psychological level and tries to climb higher after the yesterday’s oversold sign.
Technically, the AUD/USD drop is natural after the amazing rally, so you don’t have to worry if will drop much deeper in the upcoming days. Could be attracted by some important confluence areas, so more downside is in view right now. USD is frightened by the US data release, another disappointment could ruin its upside perspective.
The US is to release the Unemployment Claims report, the Initial Jobs could drop from 244K to 242K in the previous week, the indicator stayed below the 250K level since April, a major drop will boost the greenback. Moreover, the ISM Non-Manufacturing PMI could decrease from 57.4 to 56.9 points in July, while the Final Services PMI is forecasted to remain unchanged, at 54.2 points. The Factory Orders may increase by 2.9% in June, which will be good for the USD.
AUD/USD opened with a minor gap down in the morning, signalling that the bears are in control. Will drop further if will retest the broken upper median line (uml) of the descending pitchfork, the next downside target will at the median line (ml) and lower at the major lower median line (LML).
The current drop is natural after the false breakouts above the 50% Fibonacci line (ascending dotted line) and above the first warning line (wl1). Price failed to retest the warning line (wl1), signaling that the bulls are exhausted and we may have a short term reversal.
The outlook remains bullish as long as is trading above the lower median line (LML), we could have a buying opportunity from there.
