Daily Market Report – AUD/USD Aims 0.8100 Psychological Level August 30, 2017

AUD/USD More Upside In View

Price climbs higher aggressively as the USD was weakened seriously by the USDX’s drop. AUD/USD is strongly bullish on the Daily chart, should approach and reach the 0.8065 swing high, only a failure to do this will signal an exhaustion and a potential decrease.

The pair rallies and seems motivated to jump above the 0.8000 psychological level in the upcoming hours.

The USDX has managed to rebound in the US session and to stay above the 92.00 psychological level, now is trading in the red again, but we may have a bounce back on the short term after the yesterday’s spike. The dollar index plunged through the 91.91 long term horizontal support, but failed to stay there and closed the day at 92.35 level.

The Aussie rallied also because the Australian Building Approvals dropped only by 1.7% in the previous month, less versus the 5.4% estimate, while the Construction Work Done rose by 9.3% in the second quarter, beating the 0.9% estimate.

You should keep an eye on the economic calendar because the US is to release high impact data in the afternoon, which could shake the markets.

Price moves higher after the retest of the lower median line (LML) of the major ascending pitchfork, It is approaching the 0.8065 highest high, where he may find resistance again. The retreat towards the LML was natural after the failure to reach and retest the median line (ml) of the ascending pitchfork. A failure to reach the mentioned static resistance will signal and exhaustion and a potential reversal.

USD/JPY Poised For More Gains?

USD/JPY continues to move in range on the short term, failed to retest the downside line of this extended sideways movement, signaling that the bulls are still in the game and could redeem ground. Price is retesting the minor uptrend and could reach the second warning line (WL2) as well in the upcoming hours. A valid breakout above the WL2 will confirm a broader rebound on the Daily chart. I’ve drawn a minor ascending pitchfork, hoping that I’ll catch an upside momentum. Price retested the lower median line (lml) and now should climb higher.

GBP/JPY Turned To The Upside

Price increased in the early morning and should resume the upside momentum. Technically is expected to climb much higher after the false breakdown below the WL1 of the descending pitchfork and below the warning line (wl1) of the ascending pitchfork.

It’s moving somehow sideways on the daily chart, but maintaining a bullish perspective for the upcoming period.

By Olimpiu Tuns

Market Analyst

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