AUD/USD falls through 0.9577

A quick test of 0.9469/45 did not bear fruit, as the price has already returned to its previous close. Still, we consider AUD/USD to be bearish in the near to mid term. First of all, it has just breached a significant support level at 0.9577. Secondly, daily and weekly technicals are giving ‘sell' signals. Nonetheless, we should be wary of the fact that we are getting closer to the bottom and a reversal is on the horizon.

Optimism with respect to AUD/USD returned, being that a marked majority of market participants is now holding long positions. At the moment merely 29% of traders plan to profit from a decline in the price. A belief that the Aussie is going to appreciate does not pertain only to its pair with the U.S. Dollar, on average in its crosses AUD is purchased in 72% of cases.