AUD/USD unable to breach 0.9861/39

AUD/USD has come under 0.9861/39 and fell down to 0.9796, but only for a short period, quickly recovering back above the 2011 Dec low, which preserves topicality. If bears continue to drive the market, then the weekly S2 at 0.9738 or 2012 low at 0.9577 will come into play, though there is a possibility that the pair will first make a correction up to 1.0030 before returning to a downward path.

SWFX market participants are now less convinced that the Aussie is going to gain value further, being that the percentage of long positions dropped to 70% from 75%, although the dominance of bulls over bears is still substantial. Meanwhile, the share of sell orders has decreased to 60%.