Technical Analysis

AUD/USD More Upside In View


The currency pair has increased in the morning and seems poised to climb much higher in the upcoming days as the USDX failed to breakout above the 93.81 static resistance. The dollar index has slipped lower and is pressuring a dynamic support, a valid breakdown will signal a further drop and will force the USD to depreciate versus its rivals.

The USDX could move sideways on the short term before will recapture enough directional energy to start a bullish momentum.

The Aussie increased on the good Australian data and on the mixed Chinese data. The Australian Unemployment Rate decreased from 5.6% to 5.5% in September, while the Employment Change was reported at 19K, much below the 14.1K estimate.

The Chinese GDP was reported at 6.8% in the third quarter, matching expectations, while the Industrial Production increased by 6.6%, less versus the 6.4% estimate and compared to the 6.0% growth in the former reading period.

The AUD/USD increased after the yesterday’s indecision and could jump much higher in the upcoming days. The next upside target will be at the upper median line (uml) of the descending pitchfork, where he may find resistance again. It could be attracted by the confluence area formed between the 23.6% retracement level with the upper median line (uml). The failure to reach and retest the median line (ml) of the descending pitchfork and the failure to close below the 0.7835 should send the rate higher.

Author: MultiBank Exchange Group Website:
MultiBank Exchange Group
Multibank Exchange Group (MEX Group) is a multinational financial derivatives dealer. Established in California in 2005, MEX has offices in several countries around the world, including the US, the UK, Australia and China. Mex Group is regulated by the Australian Securities and Investment Commission (ASIC) in Australia, the Ras al Khaimah Free Trade Zone (RAK) in the United Arab Emirates and the Financial Services Commission (FSC) in the British Virgin Islands.
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