AUD/USD moves towards Jan low

The bearish momentum continues to develop following a test of the multi-month down-trend and 55-day SMA at 0.8785. And even though the pair has just encountered the weekly pivot point, the sell-off should remain intact, considering a majority of the technical indicators are pointing south. However, the downside risks may somewhat subside around the Jan low that merges with the monthly S1 level at 0.8660.

The gap between the bulls and the bears keeps narrowing, but the difference is nonetheless substantial—42 percentage points in favour of the former. Concerning the orders, 55% of them are to buy and 45% are to sell the Aussie.