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"The market pricing for the risk of a November RBA rate cut should reverse, and higher front-end yields will assist to support a firmer Australian dollar."
- Commonwealth Bank of Australia (based on Bloomberg)
Pair's Outlook
The Aussie is struggling to regain upward momentum, even though AUD/USD has recently broken through the neck-line of the double bottom. In order for the pair to return to growth it has to gain a foothold above a tough resistance area circa 0.7350, represented by the 100-day SMA. Success here will imply an extension of the recovery to 0.7450, where the one-year down-trend merges with the monthly R2. From below the price is underpinned by the monthly R1 at 0.7227 and 55-day SMA at 0.7177.
Traders' Sentiment
Today there are relatively more bulls in the market than yesterday. At the moment 74% of open positions are long. Meanwhile, the difference between the buy and sell orders remains insignificant.
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