The AUD/USD may plunge in the last hours even if the US dollar Index drops. The Aussie remains weak. The AUD/USD pair maintains a bearish bias, it could approach fresh new lows anytime. The pair is trading at 0.7111 at the moment of writing far below 0.7154 today's high.
Fundamentally, the Aussie declined following a negative report on the Australian Building Approvals. The reading decreased by 12.9% versus 1.4%. The Current Account was reported at 23.9B below 29.3B expected, while the Private Sector Credit increased only by 0.5% compared to 0.6% expected.
It remains to be seen how the pair will react later today after the US will publish the CB Consumer Confidence and the Chicago PMI. Better than expected US data could push the rate down.
AUD/USD Extends Its Sell-Off!
AUD/USD challenges the descending pitchfork's lower median line (LML) and the 0.7105 static support. As you already know from my previous analyses, AUD/USD maintains a bearish bias as long as it stays below 0.7170 and under the descending pitchfork's median line (ML).
Its failure to come back towards these levels signaled strong sellers. Making a valid breakdown below the lower median line (LML) and below 0.7105 could signal potential further drop.
On the other hand, staying above these downside obstacles, registering only false breakdowns could signal a potential rebound. This scenario could take shape if the US data disappoints and if the DXY drops.
Failing to reach the 0.7166 weekly pivot point in the previous attempts signaled strong bearish pressure. Closing and stabilizing below 0.7105 could indicate more declines. The first warning line (WL1) and the weekly S1 (0.7059) are seen as potential downside targets.The material has been provided by InstaForex Company - www.instaforex.com