© Dukascopy Bank SA
"Our highest conviction views are in the currency markets, and we remain short the yen and the Australian dollar against a long U.S. dollar position."
- Pacific Investment Management Co. (based on Bloomberg)
Pair's Outlook
A test of the upper boundary of the channel resulted in a strong sell-off, which might take a break either at 0.7651 (monthly S1) or already near 0.7550. Violation of the latter level will confirm Aussie's long-term intentions, as the next major point will only be around 0.60, represented by the 2008 low. Meanwhile, a distinct upward correction will be expected to start around 0.73, where the pair should meet the lower edge of the pattern.
Traders' Sentiment
The bulls retain a dominant position in the SWFX market, being that they take up 62% of it. At the same time, the amounts of buy and sell orders placed 100 pips away from the spot price are perfectly equal.
© Dukascopy Bank SA