© Dukascopy Bank SA
The Australian Dollar seems to be reversing its two-month long losing streak, as the double bottom pattern suggests the bulls have found ground to commence an upward breakout. The valley has its low at 0.9361 where the AUD/CAD pair stopped falling down on May 13. The crucial bearish test will happen in the 0.9513/19 area, where the weekly R1 is keeping the red horizontal trend-line intact for the moment. The 55-period SMA has stopped declining and its potential crossing with the 100-period SMA will indicate towards real bullish strength. The key target for the longs is the 200-period SMA, which is hovering around the weekly R2 at 0.9630. As for the sentiment, 53% of all SWFX positions are short.
© Dukascopy Bank SA