AUD/USD drops from 100-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The strength of the Australian dollar is a major burden on domestic producers and our rising unit labour costs and high energy prices are adding to pressures." 
- AiGroup (based on The Australian)

Pair's Outlook

The Australian Dollar was unable to maintain bears' pressure and the price sharply dropped today. The pair touched the 100-day SMA at 1.0380, but that was unsustainable and currently the Aussie is traded beneath a 1.0355 level, where the 55-day SMA intersects the 20-day SMA. The closest support is located at 1.0281, where the weekly PP is positioned, but if the Aussie will keep the current momentum, the level will not support the price for the long time and it will slip towards the monthly S1 at 1.0200 or even the Bollinger band at 1.0156.

Traders' Sentiment
Distribution of opened positions is heavily skewed on the bearish side, since 3/4 of the market are short. Pending orders segment is bullish with 67% of long orders.
© Dukascopy Bank SA

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