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AUD/USD is trading in the green today, but it continues to be under some bearish pressure after losing the chance to stay within the major up channel's body. The pair could come back to test and retest the near-term resistance levels before it will decide its direction.
The price increases as the USDX has decreased a little today, the index is almost to confirm an Inverse Head&Shoulders pattern on the H4 chart, so USDX's further increase will boost the dollar which it should appreciate versus its rivals.
The Aussie was punished by yesterday's poor Australian data, the Unemployment Rate has increased from 6.4% to 7.1%, jumping above the 6.9% estimate, while the Employment Change indicator was reported at -227.7K, worse versus the -105.0K specialists forecasts.
AUD/USD has escaped from the major ascending channel, but it is premature to talk about a potential corrective phase as long as the price is traded above the inside sliding line (SL) of the orange descending pitchfork and above the 0.6776 former low.
I believe that only another lower low, drop, and close below the 0.6776 low could validate the potential corrective phase, downside movement. Also, a valid breakdown below the 23.6% retracement level will suggest selling, the first downside target could be represented by the 38.2% retracement level.
AUD/USD will resume it uptrend if the price will make another higher high, so a valid breakout above the 0.7031 - 0.7063 will bring another long opportunity. The selling pressure is high as long as the pair is traded below the upper median line (UML).
We may have a good selling opportunity if AUD/USD will drop and stabilize below the 23.6% retracement level, the 38.2%, 50%, and the 61.8% levels could be used as downside targets. AUD/USD could find strong support also on the median line (ML) of the orange descending pitchfork if the pair will register a major drop.
You should know that a valid breakout above the upper median line (UML) will invalidate a further drop.
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