Daily Market Report – AUD/USD Upside Clouded October 05, 2017

AUD/USD Erased The Yesterday’s Gains

The currency pair dropped sharply today and it seems poised to resume the downward movement, this scenario will take shape only if the USDX will resume the bullish movement. Price is trading near a very strong support area, so only a valid breakdown will confirm a further drop.

AUD/USD moves in range on the short term and it was expected to climb higher on the short term after the false breakdown from the minor range. Technically, the current drop could be only temporary, it could increase again if the USDX will slip lower.

The USDX is trading below the 93.81 static resistance, but maintains a bullish bias on the short term despite the yesterday’s drop. The USD will dominate the currency market if the USDX will have enough directional energy to jump and stabilize above the 93.81 upside obstacle.

Price drops aggressively and tries to breakdown below the median line (ml) of the minor descending pitchfork and below the 38.2% retracement level. It was expected to try to climb towards the upper median line (uml) of the descending pitchfork, but a further increase will be invalidated if will close below the median line (ml).

A drop towards the next major downside target (WL1) will be confirmed after a retest of the median line (ml). Technically, it should approach and reach the lower median line (lml) of the minor descending pitchfork. This scenario will take shape only if the USDX will jump much above the 93.81 obstacle.

EUR/CHF Changed Little

EUR/CHF looks undecided today, is fighting hard to resume the minor rebound, but the bulls need support. Technically, it should climb higher after the false breakdown below the upper median line (uml) of the minor ascending pitchfork and after the failure to reach the median line (ml) of the descending pitchfork.

Is still under some pressure on the daily chart despite the current increase. A valid breakdown below the upper median line (uml) will announce a significant drop.

EUR/GBP Bulls In Control

Price increases very fast and should reach the median line (ML) very soon. I’ve said in another report that the EUR/GBP should jump above the wl3 after the failure to reach the median line (ml) of the descending pitchfork. Technically, it could climb towards the upper median line (uml) of the descending pitchfork in the upcoming weeks even if will stay under the ML.

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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