AUD/USD is headed towards 1.0502/1.0491

As expected, a dearth of notable resistances in the way of the currency pair above the cluster at 1.0403/1.0387, which consists of the 100 and 200-day SMAs, has led to substantial gains. Moreover, the rally is not considered to be overextended yet, as it preserves potential to climb up to 1.0502/1.0491 in the near future. However, technicals on longer time frames imply weakening of the bullish impetus later on.

Even though the short squeezing is still topical for AUD/USD, the portion of bulls is stable, although it is decreased, at 30%. Accordingly, traders who foresee a decline in the price take up the majority in the market—70%. The situation is different among the placed orders, 58% of which are to buy the Aussie.