© Dukascopy Bank SA
- DZ Bank AG (based on Bloomberg)
Pair's Outlook
After last week's climb the Aussie has lost its bullish momentum and at the moment it is challenging the weekly S1 at 0.9337. The daily and weekly indicators are to bullish and that could limit Australian currency's losses. We are still bearish on this currency pair as in our opinion the Aussie is overvalued and it should trade closer to the 100-day SMA at 0.9230. Since the pair breached the major level at 0.92 in April it has been trading above it; however, we expect that in longer term this level will be under attack by pair's bears.
Traders' Sentiment
SWFX market participants are not getting discouraged by Aussie's depreciation as they are still in majority with 72%. At the same time the gap between the buy (67%) and sell (33%) orders is narrowing.
© Dukascopy Bank SA