© Dukascopy Bank SA
"If manufacturing activity slows like some economists expect, U.S. yields could retreat further, dragging down the dollar."
- BK Asset Management (based on MarketWatch)
Pair's Outlook
None of the two key levels for the trading in the near term are willing to yield, trapping the currency pair between themselves for now. From the upside this is the 55-day SMA and monthly R1, currently they are standing at 0.92040.9181, from below AUD/USD is contained by the monthly pivot point at 0.9064, an area fortified by the weekly PP and 20-day SMA. We are inclined to believe that the break-out will be to the downside.
Traders' Sentiment
The Australian Dollar has become the most popular currency among all of its 17 counterparts in the SWFX marketplace. Right now 74% of the positions in its crosses are long the Aussie. The advantage of the bulls (70%) in AUD/USD is slightly less pronounced, but is nonetheless substantial.
© Dukascopy Bank SA