AUD/USD recoils from the 100-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Now we've got a bit more clarity and the potential uncertainty has been removed somewhat. The environment would be pretty positive for risk assets on the day."
- Commonwealth Bank of Australia (based on Bloomberg)


Pair's Outlook

The currency pair has notably changed its behaviour, which has become much more hectic. Recently AUD/USD started to fall or rise precipitously after a few days of directionless movement. None of the nearby levels were capable of halting today's rally, which appears to be ready to extend up to 1.0534/60. This level in turn is the upper edge of the channel down pattern, from there the pair may start forming a down leg.

Traders' Sentiment
Event though the share of short positions has diminished, an overwhelming majority of market participants (72%) foresee weakening of the Australian Dollar relatively to its U.S. counterpart. The ratio between buy and sell orders, on the other hand, is 56% to 44%, accordingly.
© Dukascopy Bank SA

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