© Dukascopy Bank SA
"The bounce in the Aussie is unlikely to last."
- BNY Mellon (based on CNBC)
Pair's Outlook
A dip from a psychological level 0.93 turned out to be overextended, since a soft test of the support at 0.8844/11, formed by the monthly S1 and the lower Bollinger band, initiated a short squeeze. The bullish reaction nearly resulted in a seizure of the weekly pivot point at 0.9020, but the bearish bias will be preserved as long as 0.93 stays intact.
Traders' Sentiment
The latest developments in AUD/USD are favoured by an overwhelming majority of traders, being that 74% of them continue to hold long positions, namely bets that the Australian Dollar is going to increase in price. In the meantime, there is a dominance of sell orders (63%) over the buy ones (37%).
© Dukascopy Bank SA