Daily Market Report – AUD/USD Additional Drop On The Cards August 07, 2017

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AUD/USD Into A Corrective Phase

AUD/USD increased in the morning, but could drop much deeper in the upcoming days as the USDX may climb higher after the Friday’s rally. USDX decreased a little in the fresh start of the week, that’s why the greenback has lost some ground versus its rivals.

The USD could dominate the currency market on the short term if the dollar index will make an accumulation movement above the 92.49 major static support. We may see a minor decrease on the USDX because could try to correct after the Friday’s impressive jump.

The Aussie increased a little on good Australian data, the AIG Job Advertisements rose by 1.5% in July, while the AIG Construction Index jumped from 56.0 to 60.5 points in the last month.

Price is trading in the green right now, but he could still drop towards the median line (ml) of the minor ascending pitchfork. Support can be found at the lower median line (LML) of the major ascending pitchfork as well. I want to remind you that the perspective remains bullish on the Daily chart if the support levels will hold.

Technically, the current retreat was expected after the false breakout above the 50% Fibonacci line (ascending dotted line). Only a valid breakdown below the lower median line (LML) will signal a major drop.

However, we may have a buying opportunity from the mentioned support levels if these will reject the price, right now is better to stay away because we don’t have any trading opportunity.

GOLD Bounce Back?

Gold continues to trade in the red on the Daily chart, but has touched a strong support area. Technically, a throwback is favored because is located in the buyer’s territory. It moves in range maintaining a bullish perspective after the breakout from the red descending pitchfork’s body.

We may have a buying opportunity from here if the support will hold, the next upside targets will be at the 382.% retracement level and higher at the $1295 per ounce.

NZD/USD Very Heavy

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NZD/USD drops like a rock on the short term and is very close to take out the static support from the 23.6% retracement level and the 0.7375 static support. A valid breakdown will open the door for more declines towards the warning line (wl4) and towards the 38.2% retracement level.

By Olimpiu Tuns

Market Analyst

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Source:: Daily Market Report – AUD/USD Additional Drop On The Cards August 07, 2017

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