AUD/USD to remain above 0.73

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Since levels of $40 a ton in January iron ore prices hit $70 last month as a combination of stimulus measures, improving demand and a weakening US dollar helped pull prices sharply higher. This effect is now starting to fade and prices have slid back sharply in the last few days."
- CMC Markets (based on WBP Online) 


Pair's Outlook 
The AUD/USD currency pair suffered a 40-pip loss on Monday, but unable to drop under the 0.73 psychological level, as it is bolstered by the monthly S2. The Aussie is now expected to rebound, with the 100-day SMA acting as the closest resistance. Consequently, with rather tough levels providing both support and resistance, the Australian Dollar could remain relatively unchanged today. Technical indicators are in favour of this scenario, but a several-pip movement to the upside is still the base case scenario, unless the 100-day SMA gives in, after being breached yesterday. 

Traders' Sentiment 
Exactly three quarters (75%) of all open positions are long today, compared to 74% yesterday. At the same time, the portion of orders to acquire the Aussie inched lower, namely from 67 to 60%.
© Dukascopy Bank SA

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