AUD/USD struggles to pierce the 55-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The flow is shifting back in favor of the dollar, hurt recently by spotty economic data and receding likelihood of an early rate hike. Comments by policymakers have also helped." 
- FPG Securities (based on CNBC)


Pair's Outlook
The Australian Dollar managed to reach the 20-day SMA on Friday, which pushed the AUD/USD pair back down. As a result, the Aussie suffered substantial losses, and the monthly PP failed to prevent the fall. However, the 55-day SMA succeeded, as the trading session ended at 0.7827. Today we expect more weakness in the given pair, but the 55-day SMA might prove difficult to breach. Therefore, we should not rule out the possibility of a slight rebound towards the monthly PP. Meanwhile, technical studies retain their mixed signals. 

Traders' Sentiment 
Market sentiment improved, as 73% of traders are now long the Aussie (previously 70%). The number of buy orders in the 100-pip range from the spot decreased dramatically, from 70 to 19%.
© Dukascopy Bank SA

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