© Dukascopy Bank SA
- Bank of America Merrill Lynch (based on Bloomberg)
Pair's Outlook
Since AUD/USD has just confronted the resistance at 0.8785 (monthly PP, 55-day SMA and three-month down-trend), the risks are heavily skewed to the downside. The first notable support in the way of the sell-off is represented by the weekly PP and 20-day SMA at 0.8722/08, and it is already being tested. However, this demand zone is expected to be broken, leaving the demand area at 0.8660/35 (monthly S1 and Jan low) exposed.
Traders' Sentiment
Nearly three out of four SWFX market participants are holding long positions on the Australian Dollar, expecting the currency to build on the recent success. Meanwhile, the share of buy orders placed 100 pips from the spot fell from 58 to 52%.
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