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"My view is that the dollar is still in an uptrend and is likely to rally further in 2014."
- Marshall Gittler, IronFX (based on MarketWatch)
Pair's Outlook
Given that the resistance at 0.8925/03 denied an attempt of AUD/USD to rise further, the bearish channel (in place since Oct 23) retains its topicality. Accordingly, this substantially increases the probability of a new low appearing on the chart. This dip may also extend through the monthly S2 at 0.8746 and reach 0.8700/88, the lower boundary of the downward-sloping corridor.
Traders' Sentiment
Just as in EUR/JPY, the ratio between the buy and sell orders in AUD/USD was subject to a noticeable change. Within 100 pips from the spot the share of buy orders soared from 35% up to 72%. Meanwhile, the portion of long positions remains more or less the same and is currently at 70%.
© Dukascopy Bank SA