AUD/USD rebounded in the short term which it has natural after its massive drop. It was traded at 0.6919 at the time of writing far above 0.6828 yesterday's low. It has increased by 1.50% from yesterday's low to today's high of 0.6931.
The currency pair started to grow ahead of the Chinese data. As you already know, China and Australia are economic partners. The Chinese New Loans dropped unexpectedly lower from 3130B to 645B far below 1550B estimates, while the M2 Money Supply rose by 10.5% exceeding the 9.9% forecasts.
The AUD/USD pair extended its rebound as the US Prelim UoM Consumer Sentiment came in worse than expected. The indicator was reported at 59.1 points below 64.1 estimates, and versus 65.2 in the previous reporting period.
AUD/USD Bearish Bias!
AUD/USD rebounded but the bias remains bearish as long as it stays below the downtrend line. The 0.6967 historical level represents an upside static resistance, while the ascending pitchfork's median line (ml) stands as a dynamic obstacle.
Personally, I would like AUD/USD to reach and challenge these upside obstacles before registering a strong move.
AUD/USD Forecast!
A valid breakout above the downtrend line, 0.6967, and through the median line (ml) may signal a broader growth and could bring new buying opportunities.
False breakouts through these levels or a major bearish pattern printed around these obstacles may signal a new sell-off.
