AUD/USD is trading in the red at 0.7751 and it seems vulnerable to drop in the short term. The pair moves somehow sideways in the short term, so we have to wait for a fresh trading opportunity as right now we don't have anything.
Today could be decisive for AUD/USD's development. The US is to release the CB Consumer Confidence which is expected to drop from 121.7 to 119.0 points. USD could drop further if the indicator will come in worse than expected, while better than expected data should boost the greenback.
AUD/USD Upside Seems Limited!
AUD/USD is trapped within a triangle, so a valid breakout from this pattern could bring a new trading opportunity. The pair moves sideways and it has printed a potential Head & Shoulders pattern.
Still, the reversal pattern is far from being confirmed. The bias is bullish as long as it stays above the 0.7700 level. The US Dollar Index is bearish, so the USD could depreciate further.
Forecast!
AUD/USD is trading below the broken uptrend line. A downside breakout from the triangle pattern and stabilizing under the descending pitchfork's median line (ML) and below the S1 (0.7686) may activate a strong sell-off, a downside movement.
An upside breakout and a new higher high, a valid breakout above the R1 (0.7789) is seen as an upside continuation signal.
The material has been provided by InstaForex Company - www.instaforex.com