The AUD/USD pair is trading in the red at 0.7143 level. It has resumed its downside movement even if the Dollar Index has slipped lower. Technically, the pair reached dynamic support, but only a strong bullish pattern could announce a reversal.
Surprisingly or not, the Aussie depreciated further even if the Australian Retail Sales registered a 4.9% growth versus 2.2% expected and compared to 1.3% in the previous reporting period.
AUD/USD Massive Sell-Off!
AUD/USD extended its sell-off after retesting the descending pitchfork's median line (ML). Now, it has reached the lower median line (LML) which stands as a dynamic support. It was almost to reach the weekly S1 (0.7131) level which is seen as a static support.
It remains to see how the rate could react around these support levels. Still, after its aggressive breakdown below 0.7170, the pressure remains high. A temporary rebound could bring new short opportunties.
A valid breakdown below the lower median line (LML) and under the S2 could signal a further drop towards 0.7105 - 0.7100 area.
As long as it stays under 0.7170 and below the descending pitchfork's median line (ML), the AUD/USD could extend its sell-off. A temporary growth towards these levels could bring new bearish signals, 0.7105 could be used as a downside obstacle.The material has been provided by InstaForex Company - www.instaforex.com