AUD/USD bounced back in the short term as the Dollar Index has slipped lower after poor US data was reported yesterday. Technically, the pair maintains a bearish bias, it could drop towards new lows anytime. After its amazing sell-off, a minor rebound was somehow expected. The AUD/USD pair is traded at 0.7139 level at the time of writing.
The pair slipped lower after the Australian CPI reported a 1.3% growth versus 1.0% expected, while the Trimmed Mean CPI registered a 1.0% growth exceeding the 0.7% estimates. In addition, the NAB Business Confidence was reported at -12 points compared to 12 points in the previous reporting period.
The US CB Consumer Confidence could bring some action later today. Still, don't forget that tomorrow, the FOMC stands as the main event of the week. AUD/USD could register sharp movements around the FOMC Statement and FOMC Press Conference.
AUD/USD Downside Pressure!
AUD/USD found support on the ascending pitchfork's lower median line (LML) and now it has tried to test the inside slding line (SL1) which stands as a dynamic resistance. Technically, a valid breakdown below the lower median line (LML) could activate a larger downside movement.
In the short term, as long as it stays above the lower median line (LML), AUD/USD could resume its rebound. It could still reach the SL1 and it could retest 0.72 psychological level.
AUD/USD Forecast!
A new lower low, a bearish closure below 0.7090 immediate low could confirm a downside continuation and could bring new selling opportunities. 0.7000 psychological level is seen as a potential downside target if the rate drops deeper.
