AUD/USD moves sideways in the short term expecting the USDX to clarify its direction. Technically, the outlook is bullish and will remain the same as long as AUD/USD stays above 0.7665 critical support, former low.
The pair has managed to decline again since yesterday's session as the greenback received a helping hand from the US economic data. The Unemployment Claims dropped to 900K in the last week beating expectations, while the Housing Starts and Building Permits indicators have increased unexpectedly.
Today, the US Flash Services PMI and Flash Manufacturing PMI data could be decisive. In line with expectations figures, or better could send AUD/USD towards new lows. On the other hand, worse data could force the USD's buyers to step out.
AUD/USD found resistance at R1 (0.7782) and now is traded back with the minor descending pitchfork's body. It's traded somewhere at the half of the short-term range between 0.7665 and 0.7820 levels.
Escaping from this range brings a great trading opportunity in either way. Good US economic numbers could force the pair to register a downside breakout. Technically, AUD/USD is trapped also between the median line (ml) and the upper median line (uml) of the minor red descending pitchfork.
A buying opportunity appears if the price makes a new higher high, if it jumps and closes above the R1 (0.7782) level. A bullish closure above this level indicates an upside breakout from the current range. An upside breakout signals further growth towards 0.79 and 0.80 levels.
Selling could be facilitated by a valid breakout below 0.7665 and through the descending pitchfork's median line (ml).
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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