AUD/USD close to hitting resistance

AUD/USD has managed to increase significantly in the short term, but it's close to reaching a strong dynamic resistance. It remains to see how the currency pair will react around this key level.

The pair has increased as the Dollar Index has plunged in the short term. Technically, the pressure remains high on the DXY. The Australian CB Leading Index increased by 0.5% remaining unchanged. AUD/USD continues to stay higher even despite the fact that the US New Home Sales has come in better than expected. The Richmond Manufacturing Index was reported at 9 far below 25 expected and compared to 27 reported in the previous reporting period.

The US Durable Goods Orders and the Core Durable Goods Orders reports are likely to have a significant impact tomorrow. I believe that only the US Prelim GDP, Unemployment Claims, and Fed Chair Powell's speech at Jackson Hole Symposium could have a high impact during the week.

AUD/USD growth over

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AUD/USD advanced after failing to reach the psychological level of 0.71. Now it is expected to hit the descending pitchfork's median line (ML). It may find resistance at this level, so a bearish pattern here may signal a downside movement.

It has shown minor bullish exhaustion only because the Dollar Index has tried to recover. The level of 0.7289 is seen as static resistance. Personally, I'll wait for fresh trading opportunities, because right now we don't have anything.

Forecast

The current rebound could end soon if AUD/USD prints a bearish pattern on the immediate resistance levels. Only if the price jumps and stabilizes above 0.7289 and beyond 0.73 psychological level, it will signal further growth.

A false breakout with great separation above the median line (ml) or a bearish engulfing pattern could bring a sell-off.

The material has been provided by InstaForex Company - www.instaforex.com

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