© Dukascopy Bank SA
Pair's Outlook
The Aussie has dropped sharply, it lost about 100 pips today and the pair is trading below the weekly S1 at 0.9293, this decline was heavily impacted by the informational shock. The pair traded above the 20-day SMA since the middle of March; however, now it is sliding towards the weekly S2 at 0.9255. Nonetheless, the majority of daily and weekly technical indicators remain bullish.
Traders' Sentiment
An overwhelming majority of the SWFX market participants still consider the Australian Dollar to be overvalued relative to the U.S. counterpart. Right now 68% of traders have shorted the Aussie, while merely 32% of them believe the currency is going to appreciate.
© Dukascopy Bank SA