Daily Market Report – AUD/USD intensifies the declines September 27, 2017

AUD/USD Hit New Downside Target

The currency pair dropped further and reached another target, we’ll see how will react now because a rejection will send the rate higher in the upcoming days. Technically, it should drop much deeper in the upcoming period, so the bias remains bearish. AUD/USD resumed the bearish momentum as the USDX stays higher and tries to approach the 93.30 yesterday’s high.

The dollar index closed the yesterday’s session right above the 93.00 psychological level, signaling that the bulls are strong on the short term. USDX has finally managed to jump in the green territory, is located above a dynamic support (resistance turned into support) and could approach new highs after a minor consolidation.

You should know that the US session is expected to bring a high volatility as the United States is to release high impact data.

Price accelerate the sell-off after the impressive breakdown below the lower median line (LML) of the major ascending pitchfork. Right now is pressuring the median line (ml) of the minor descending pitchfork, a valid breakdown will confirm a further drop in the upcoming period. Support can be found at the 0.7835 static support as well. The major downside target will be at the first warning line (WL1) of the ascending pitchfork, it could also be attracted by the lower median line (lml) of the minor descending pitchfork if the USDX will jump much higher in the upcoming weeks.

GBP/USD Tumbles

Price drops on the short term and should reach the first warning line (wl1) of the ascending pitchfork. Actually, it could be attracted by the confluence area formed at the intersection between the warning line (wl1) with the upside line of the ascending channel.

The perspective remains bullish on the daily chart despite the current drop, only a drop below the 250% Fibonacci line will confirm a broader drop.

USD/CAD Losing Momentum

The currency pair increased in the Asian session and tries to recover after the yesterday’s growth. It seems like that the bulls are a little exhausted on the short term. The next upside target will be at the median line (ml) of the blue ascending pitchfork, a failure to reach it will send the rate towards the LML again.

By Olimpiu Tuns

Market Analyst

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