AUD/USD plunged in the short term after reaching a fresh new high of 0.7890. The pair decreased as the USDX rebounded. It could retest the former static resistance before starting to increase again.
The Aussie lost significant ground after the Australian retail sales increased only by 1.3% versus 1.4% expected and 1.4% growth in the previous period. The US is to release its inflation data tomorrow.
The CPI is expected to increase by 0.2% in April versus 0.6% in March, while the Core CPI could increase by 0.3%. Poor US figures could boost AUD/USD, while better than expected data could push the rate down.
AUD/USD Still Bullish!
AUD/USD dropped and now it could retest 0.7815 broken static resistance. It has failed to resume its growth towards the upper median line (UML). A temporary decline after the amazing rally was somehow expected.
Consolidating above the 0.7815 static support could signal a new upside momentum. Dropping and stabilizing below it could indicate a deeper decline in the short term.
AUD/USD Outlook!
AUD/USD could start increasing if it stabilizes above the 0.7815 level. A false breakdown with great separation or a major bullish engulfing on this level could bring a new bullish momentum.
The major upside target remains at the upper median line (UML) of the major descending pitchfork.
The material has been provided by InstaForex Company - www.instaforex.com