"AUD/USD broke an important mid-term support, but the breakout is not very convincing. The price is not heading lower and failed to make lower highs and lows. "
— Alpari Research & Analysis
Pair's Outlook
The Aussie plunged against the Greenback during the early hours of today's trading session. Since then, it has managed to recover a major part of its intraday losses. The pair is restricted between the 100-day SMA at 0.7517 and a support cluster formed by the monthly S1 and the lower Bollinger band circa 0.7490; thus, a move in either direction is possible. The base scenario favours short-term continuation of the current upward trend. A move above the 100-day SMA may serve as the necessary confirmation. Nevertheless, traders should bear in mind the double top pattern that was finalised yesterday.
Traders' Sentiment
Market sentiment remains unchanged, with 47% of traders holding short positions. In addition, 69% of set up orders are to sell the pair.
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