AUD/USD enters doorway to 73 cents

AUD/USD appears to be trading in a sort of a broadening ascending channel. At the moment the Aussie is right at the upper boundary of the pattern, which implies a sell-off from 0.7240. At the same time, considering that the price has broken resistance at 0.7180/75, which we expected to hold, the dip is likely to be limited to 50-60 pips. After this correction the pair may well climb higher, up to another seven-month trend-line at 73 cents.

The bullish sentiment among the SWFX traders has become only more distinct since the last report—the percentage of longs increased from 71 to 73%. As for the orders, 45% of them are to buy and 55% are to sell the Australian Dollar.