© Dukascopy Bank SA
"Because of the big moves we've seen in the Aussie dollar last week, in terms of it depreciating quite sharply, the market is short the Aussie dollar."
- National Australia Ban (based on The Australian)
Pair's Outlook
Despite some bullishness yesterday it seems that the pair's bulls are incapable of pushing the pair higher. As a consequence we expect 0.9057/34 area to be tested in the next few days. Dip below it could provoke a sell off till August low with weekly S2 being an interim target. In orders to neutralise some of this pressure the pair should peak at least above 100-day SMA which seems rather unlikely at the moment.
Traders' Sentiment
Overall attitude towards the aussie remains highly bullish which can be seen on the aussie—greenback cross as well. Bulls hold 70% of all open positions on the pair. It does not seems we will see any major changes soon as bearish side of pending orders contracted by 5% and is at 51% gauge today.
© Dukascopy Bank SA