AUD/USD bumps into 1.0577/59

The demand for the Australian Dollar has considerably increased since yesterday, as reflected by the most recent spike in the chart. However, a ceiling at 1.0577/59 in conjunction with 1.0624/12 has capped the price since March and has not yet been overcome, decreasing the possibility of a sustainable rally from the present levels. In the meantime, the pair is underpinned by an area of confluence of 20, 55, 100 and 200-day SMAs that stretches from 1.0509 to 1.0352.

The share of market participants holding short positions has slightly decreased, but this has not impacted the overall picture, as 72% of traders still anticipate the Aussie to depreciate (AUD is bought only in 25% of cases on average across its crosses). Among orders placed on the pair, however, there is a clear prevalence of buy orders that constitute 61% of the total amount.