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- Jim Lee, head of US derivative strategy at RBS (based on Bloomberg)
Pair's Outlook
The bulls are attempting to push AUD/USD over the verge of a bullish breakout despite a slight decline on Friday. In case of a further upward movement, the first target for the pair would be weekly R1 at 1.0576 and monthly R2 at 1.0690. However, in case of a dip, the pair will strive towards the 20-day MA at 1.0321. The Channel Up pattern on the pair started in mid-June, 2012.
Traders' Sentiment
The number of bulls on the market is declining, according to SWFX sentiment index, as only 59% of traders (down from 68% on Friday) favor pair's upward movement. However, 41% of market participants expect the pair to decline in near-term.
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