Daily Market Report – AUD/USD Looks Oversold October 02, 2017

AUD/USD Rebound?

The currency pair dropped and reached fresh new lows in the start of the European session, but failed to stay there and now fights to jump above a dynamic resistance. It seems undecided right now, but I hope that we’ll have another trading opportunity very soon as the rate is located near very important levels. Price should climb much higher if the USDX will have enough bullish energy to close above the 93.68 previous high.

A further USDX’s increase will send the AUD/USD much lower in the upcoming days. The dollar index edged higher after the failure to reach and retest and dynamic support. USDX approaches the 93.81 static resistance, a valid breakout above this level will signal a major rebound in the upcoming weeks. Technically, the USDX could still develop an Inverse Head and Shoulders in the upcoming period, the 93.81 could represent the neckline.

The AUD/USD dropped further after the retest of the median line (ml) of the descending pitchfork, but the bears have shown some exhaustion signs. Price is pressuring the 38.2% retracement level, a valid breakdown could confirm a further drop in the upcoming period.

Technically, it should be attracted by the lower median line (lml) of the descending pitchfork, but remains to see how will react when will hit the first warning line (WL1) of the ascending pitchfork.

However, a breakout above the median line (ml) of the descending pitchfork will signal an increase towards the upper median line (uml) of the descending pitchfork.

GBP/USD Losing Altitude

Price drops like a rock and it seems poised to reach fresh new lows in the upcoming hours. The dollar drags the price down on the short term as the USDX has managed to climb higher. GBP/USD approaches the outside sliding line (SL) where he may find support again. Technically, it should be attracted by the median line (ml) of the minor descending pitchfork. Now is pressuring the 1.3268 horizontal support, a valid breakdown will send the rate towards the 250% Fibonacci line (ascending dotted line).

EUR/USD Poised For Further Drop

EUR/USD drops again and invalidates the Friday’s breakout above the median line (ml) of the ascending pitchfork. It has opened with a gap down in the morning, signaling that the bears are in full control. Price approaches the 1.1711 static support, only a valid breakdown will confirm a further drop in the upcoming period. The false breakout above the confluence area formed between the median line of the ascending pitchfork with the median line (ml) of the descending pitchfork should send the rate tumbling.

By Olimpiu Tuns – Market Analyst

I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com, countingpips.com, forexalchemy.com, etc.

Risk Disclaimer:

Trading, in general, is very risky and is not suited for everyone. There is always a chance of losing some or all of your initial investment/deposit, so do not invest money you can’t afford to lose. You are strongly advised to carry out your independent research before making any trading decisions. All the analysis, market reports posted on this site are only educational and do not constitute an investment advice or recommendation to open or close positions on international financial markets. The author is not responsible for any loss of profit or damage which may arise from transactions made based on any information on this website.

The post Daily Market Report – AUD/USD Looks Oversold October 02, 2017 appeared first on mexgroupblog.

Source:: Daily Market Report – AUD/USD Looks Oversold October 02, 2017