Price increased in the early morning, but stays much below the 0.7994 Friday’s high. The perspective remains bullish on the daily chart as the uptrend is still intact. Is premature to talk about a corrective phase because it is located above some important support levels.
Is very important to see how the USDX will react in the upcoming period, it’s still under massive selling pressure because is trapped under major resistance levels. USDX decreased in the morning and should retest the 92.49 horizontal support, could still start a leg higher as long as it stays above this obstacle.
The Aussie increased on the mixed Australian data, the Company Operating Profits dropped by 4.5% in the second quarter, more versus the 3.9% estimate, the indicator plunged after the 5.8% growth in the former reading period. Moreover, the ANZ Job Advertisements rose by 2.0%, beating the 1.6% in the previous reading period, while the MI Inflation Gauge rose by 0.1%.
Price looks a little exhausted after the failure to reach and retest the median line (ml) of the minor ascending pitchfork. Now is retesting the upper median line (uml) of the minor descending pitchfork, could come to retest the confluence area formed at the intersection between the lower median line (lml) with the upper median line (uml).
The major upside target remains at the 0.8065 static resistance, will approach it if will stay within the ascending pitchfork’s body. A major drop will come only if the rate will make a valid breakdown below the median line (ML) of the major ascending pitchfork.
