© Dukascopy Bank SA
"Funding currencies, such as dollar, yen and the Swiss franc are soft as investors look for value and yield."
- ING (based on Reuters)
Pair's Outlook
Although AUD/USD opened this week with a fairly large (30-pip wide) bullish gap and most of the daily indicators are bearish, the Aussie remains buoyant. Still, the selling pressure should prevail and ultimately take the price below the key support area, which is mainly formed by the 100-day SMA. Then the exchange rate may finally start targeting 0.8845—August low.
Traders' Sentiment
Just as AUD/USD itself, the distribution among the long and short positions remains perfectly unchanged. While the former continue to take up overwhelming 70% of the market, the latter are in a distinct minority with only 30%. Concerning the orders, 63% are to buy the Aussie.
© Dukascopy Bank SA