AUD/USD drops further and extends the bearish movement. The USD drags the price lower as the USDX has managed to resume the yesterday’s impressive rally. Price is trading in the red and is targeting new lows after the retest of a dynamic resistance (support turned into resistance). Technically is expected to drop further in the upcoming days because has fallen much below the 0.7807 August low.
Remains to see what will happen because the USDX is pressuring the 93.81 static resistance, has climbed above it, but this needs to be confirmed.
The AUD/USD increased a little in the last hour as the USDX has slipped lower after the morning rally. The Reserve bank of Australia has decided to leave the Cash Rate unchanged at 1.50%, matching expectations. The Australian Commodity Prices increased only by 18.3% in September, less versus the 20.8% growth in the former reading period, while the ANZ Job Advertisements rose by 0.0%, less compared to the 1.7% growth in the former reading period. Moreover, the Building Approvals surged by 0.4%, less versus the 1.1% estimate.
Price dropped further after the yesterday’s minor indecision and reached the 0.7784 level. The perspective remains bearish as long as is trading below the median line (ml) of the minor descending pitchfork. The next downside target will be at the 0.7755 level, but could be attracted by the first warning line (WL1) of the major ascending pitchfork.
