Daily Market Report -AUD/USD Upside Journey In Play October 04, 2017

AUD/USD Downside Paused

The AUD/USD has increased sharply in the morning and has ignored a dynamic resistance. Price is trading in the buyer’s territory, but we still need a confirmation because this could be a false breakout if the USDX will start an amazing rally.

The Aussie increased even if the AIG Services Index dropped from 53.0 to 52.1 points. The greenback drops ahead of the US high impact data release, this could be crucial for the USD. The ADP Non-Farm Employment Change could drop from 237K to 131K in the previous months, while the ISM Non-Manufacturing PMI is expected to increase from 55.3 to 55.5 points.

We may have a high volatility in the US trading session, so you should be careful not to ruin your account. The FED Chair will speak tonight, but remains to see if will give some clues regarding the monetary policy.

The rate is trading in the green and tries to recover after the corrective phase. I’ve said in the last day’s that the AUD/USD seems a little oversold, but I’ve said that only a valid breakout above the median line (ml) of the descending pitchfork will confirm a minor increase on the short term. The failure to stay below the median line (ml) of the descending pitchfork will send the rate towards the upper median line (uml) of the descending pitchfork.

Technically, it could e attracted by the confluence area formed between the LML with the upper median line (uml) of the descending pitchfork. This scenario will take shape only if the US data will disappoint in the afternoon.

USD/CHF Rising Wedge?

The price has found strong resistance and now drops again on the short term. Has show an overbought in the previous days after the failure to close above the median line (ml) of the minor ascending pitchfork and after the failure to close near this dynamic resistance. The yesterday’s false breakout above the upper median line (uml) of the descending pitchfork signaled another leg lower. Price developed a minor Rising Wedge pattern, a valid breakdown from it will confirm a drop towards the 0.9634. USD/CHF could be attracted by the lower median line (lml) of the ascending pitchfork.

GBP/JPY Pressured By The Nikkei’s Drop

Price drops further as the Nikkei stock index retreats after the yesterday’s amazing rally. A further Nikkei’s increase forces the Yen the appreciate versus all its rivals on the short term. The next downside target will be at the 148.46 static support, only a valid breakdown will confirm a larger drop.

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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