Daily Market Report – AUD/USD Still In The Green October 19, 2017

AUD/USD More Upside In View

The currency pair has increased in the morning and seems poised to climb much higher in the upcoming days as the USDX failed to breakout above the 93.81 static resistance. The dollar index has slipped lower and is pressuring a dynamic support, a valid breakdown will signal a further drop and will force the USD to depreciate versus its rivals.

The USDX could move sideways on the short term before will recapture enough directional energy to start a bullish momentum.

The Aussie increased on the good Australian data and on the mixed Chinese data. The Australian Unemployment Rate decreased from 5.6% to 5.5% in September, while the Employment Change was reported at 19K, much below the 14.1K estimate.

The Chinese GDP was reported at 6.8% in the third quarter, matching expectations, while the Industrial Production increased by 6.6%, less versus the 6.4% estimate and compared to the 6.0% growth in the former reading period.

The AUD/USD increased after the yesterday’s indecision and could jump much higher in the upcoming days. The next upside target will be at the upper median line (uml) of the descending pitchfork, where he may find resistance again. It could be attracted by the confluence area formed between the 23.6% retracement level with the upper median line (uml). The failure to reach and retest the median line (ml) of the descending pitchfork and the failure to close below the 0.7835 should send the rate higher.

Gold Should Drop Further

The rate has dropped further and has resumed the bearish momentum. Technically, it should drop to reach and retest the sliding line (SL) of the ascending pitchfork after the breakdown below the 50% retracement level. Remains to see how will react when will hit the SL, a valid breakdown will confirm a drop towards the 61.8% retracement level.

NZD/USD Falling Wedge?

The NZD/USD drops like a rock and should reach the 0.7053 static support. Remains to see what will happen in the upcoming days because a USDX’s drop will force the pair to increase again. Price could move in range on the short term, I’ve drawn a Falling Wedge pattern, but this is far from being confirmed. The behavior could change if the rate will start to make higher lows and could signal another leg higher.

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.

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