AUD/USD Focused On Correction
AUD/USD drops further and extends the bearish movement. The USD drags the price lower as the US Dollar Index 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.
EUR/CHF Further Drop Invalidated
Price increased significantly in the second part of the yesterday’s trading session and has managed to stay much above the upper median line (uml) of the minor ascending pitchfork. Price increased today and resumes the yesterday’s increase. Technically, it should approach and reach the upper median line (uml) of the descending pitchfork in the upcoming period after the failure to reach the median line (ml).
EUR/JPY Upside Momentum Favored
Price failed to stay below the outside sliding line (SL) and now tries to climb higher because the Yen is demolished by the Nikkei’s impressive rally. The Nikkei stock index rallied and jumped much above the 20498 previous high. The index opened with a gap up in the yesterday’s morning, signaling that the bulls are in full control. However, only a valid breakout above the median line (ml) of the black ascending pitchfork will confirm a further increase in the upcoming weeks.
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