AUD/USD risks breaking the channel pattern

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"In our view, the USD's upside is limited to the peak reached in late December until a confirmation of the new US government's inflationary economic policies is received."  
– CBA (based on The Business Times)


Pair's Outlook 

The Aussie found itself in a rather tricky situation today. On one hand, the AUD/USD currency pair is supported by the ascending channel's lower boundary, which should cause another rally today as on Monday. From the other. On the other hand, a possible eight-week resistance line is located just above today's opening price, which could trigger more AUD-selling. Technically, this would cause the channel pattern to end and resume the previous trend, in this case—bearish. However, technical studies keep giving bullish signals, implying that the possible eight-week resistance is to be pierced and the weekly R1 at 0.7611 to be put to the test. 

Traders' Sentiment 

Today 65% of traders are short the Aussie, while 56% of all pending orders are to sell the commodity currency.
© Dukascopy Bank SA

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