AUD/USD breaches the 20-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The RBA has taken the view that the easing they've done so far has yet to work its way into the economy. Some bearishness on the Aussie is justified, but over bearishness is not." 
- UBS (based on Bloomberg) 


Pair's Outlook 
AUD/USD bounced to the weekly PP level at 1.0235 yesterday and today sharply appreciates, threatening to enter the upper Bollinger band's part and reverse trend to bullish.  Just above the 20-day SMA, the monthly PP and weekly R1 may be found at a 1.0285 level. Settlement above this resistance would indicate a strong buy signal, since the other resistances are far away and the pair would be free to reach new highs. 

Traders' Sentiment 
Distribution of long and short positions on AUD/USD pair changed just fractionally, as 47% positions stand for bullish  sentiments and 53% for bearish. Waiting orders market is rather neutral, since 48% of them are to buy and 52% are to sell.
© Dukascopy Bank SA

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