AUD/USD bulls gain some strength

AUD/USD pair recovered from the 2007 low support at 0.769 and is expected to consolidate further. However, the upside move should be limited by 0.784 level, the bottom trend line that acted as a strong resistance level for about two weeks. The break above that level should trigger a way toward the weekly R1 at 0.79. In the bigger picture, the long– term down trend from May 2011 is still in progress.

The market remains highly bullish with 64% of bought trades. 23% of participants hold the 50– pip pending orders long and the 100– pip ones have generally the same bullish interest with about 32% of long holders.