AUD/USD drops unexpectedly

AUD/USD depreciates today, easily slipping through the weekly R1 level at 1.0304. The reverse of the bullish trend is a bit unexpected, as it occurred in an area without any resistance levels. It is possible, that the Aussie slips to test strength of an upside trend and the first support would be located at 1.0285, the monthly PP, but a more important level is the 20-day SMA at 1.0258, which signals about the major changes in an on going trend.

SWFX market participants finally reacted to the recent sharp appreciation of the Aussie and heavily shorted the jump, as only 26% are long positions and 74% are short. Waiting orders segment is orientated for a bullish pattern, as 57% orders are buy.