AUD/USD increased in the morning, but could drop much deeper in the upcoming days as the USDX may climb higher after the Friday’s rally. USDX decreased a little in the fresh start of the week, that’s why the greenback has lost some ground versus its rivals.
The USD could dominate the currency market on the short term if the dollar index will make an accumulation movement above the 92.49 major static support. We may see a minor decrease on the USDX because could try to correct after the Friday’s impressive jump.
The Aussie increased a little on good Australian data, the AIG Job Advertisements rose by 1.5% in July, while the AIG Construction Index jumped from 56.0 to 60.5 points in the last month.
Price is trading in the green right now, but he could still drop towards the median line (ml) of the minor ascending pitchfork. Support can be found at the lower median line (LML) of the major ascending pitchfork as well. I want to remind you that the perspective remains bullish on the Daily chart if the support levels will hold.
Technically, the current retreat was expected after the false breakout above the 50% Fibonacci line (ascending dotted line). Only a valid breakdown below the lower median line (LML) will signal a major drop.
However, we may have a buying opportunity from the mentioned support levels if these will reject the price, right now is better to stay away because we don’t have any trading opportunity.
