© Dukascopy Bank SA
"There's an argument to suggest we've gotten far too bearish on the Aussie. If you're sitting short Aussie off the lows you're probably feeling a bit nervous and that's really why we're seeing a bounce."
- Westpac Banking Corp. (based on Bloomberg)
Pair's Outlook
Against the odds, AUD/USD effortlessly pierced through the resistance at 0.9160/29 today and is rapidly approaching the weekly R1 level at 0.9261 at the moment. If this falls just like the area formed by the weekly PP together with 20-day SMA, the price may encounter a tough resistance zone at 0.9348/14 and at 0.9387, but should be capped by the latter.
Traders' Sentiment
The Australian Dollar remains by far the most preferred currency among its major counterparts, being that 71% of positions in its crosses are long. The U.S. Dollar, the second most popular instrument in the Forex market, was bought in only 51% of transactions. Accordingly, there is a significant difference between the bulls (72%) and bears (28%) trading AUD/USD.
© Dukascopy Bank SA