"The market is only starting to factor in recent developments regarding North Korea, and it now wants to figure out the geopolitical implications of the U.S.-China summit. "
— SGT Markets
Pair's Outlook
The general trend for the Aussie has been bearish for the last trading sessions. However, the currency has approached the lower Bollinger band that might provide crucial support. It should be remembered that the pair has formed a double top; therefore, it is expected that a breach of the nearest support might result in a dip down to the weekly S1 at 0.7451. In contrast, the Aussie is set to meet resistance at the 100-day SMA in case the pair manages to appreciate against the Greenback. Yellen's speech scheduled this evening might make corrections to the overall price movement.
Traders' Sentiment
Market sentiment remains bearish, as 47% of open positions are short. Moreover, 58% of pending orders are to sell the Aussie.
© Dukascopy Bank SA