AUD/USD gravitates towards August low

As noted previously, the latest recovery of AUD/USD was characterised by a lack of bullish momentum. As a result, the first monthly resistance at 0.8976/66 forced the pair to turn around. Consequently, we may expect the dip to extend through the nearest supports back to the August low at 0.8863/43, which is reinforced by the weekly S1 and the Bollinger band.

The percentage of bullish market participants stays the same as yesterday, specifically at 65%, meaning that an overwhelming majority of traders continue to foresee appreciation of the Aussie, regardless of its weak performance for the last two and a half months, namely an eight-figure drop.