© Dukascopy Bank SA
– based on The Australian
Pair's Outlook
The broadening ascending wedge pattern that the pair has developed over the last three months has been pulling AUD/USD towards its upper trend-line at 0.7796, as the pair finally managed to break above the weekly R2 and monthly R1 cluster at 0.7685/87. The rate has just a few resistances left before it reaches the upper boundary of the wedge where it could either fail or execute the rally away from the pattern with the April high of 0.7836 being the first target. If the pair fails to edge higher and a bear-trend is established, the multi-year downtrend will put up a battle making it harder to dip underneath.
Traders' Sentiment
Long positions contribute 51% to trader sentiment and 70% of pending commands are to buy the Australian currency.
© Dukascopy Bank SA