AUD/USD takes a hit from falling oil prices

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"AUD/USD has already reached the 23.6% retracement at 0.6946, and failed here, overall risk remains on the downside." 
- Commerzbank (based on FXStreet) 

Pair's Outlook 
A rebound in commodity prices strengthened the Australian currency on Tuesday, with AUD/USD volatility reaching almost reaching the monthly S2 at 0.6967, but with trade closing in front of the immediate resistance, retaking the 0.69 level. However, oil futures deteriorated again today, consequently, pushing the given pair lower towards another retest of the closest support, namely the monthly S3. This level is expected to hold the losses, whereas a breach is likely to set the Aussie on another bearish journey until the 2009 low at 0.6246 is reached.  

Traders' Sentiment 
Bulls keep losing numbers, as 72% of all open positions are short today, compared to 73% on Tuesday.
© Dukascopy Bank SA

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