AUD/USD slips to the 20-day SMA

AUD/USD failed to resist the bearish sentiments and the price dropped sharply. Yesterday the pair was close to a two week high at 1.0497, but today the Aussie slipped through the weekly PP at 1.0435 and was stopped by a 1.0413/1.0402 area, where the 20-day and 100-day SMAs merge, forming the resistance. Further depreciation might extend till the 200-day SMA at 1.0388 or even till a 1.0339 level, where the 55-day SMA, monthly PP and weekly S2 form the major resistance.

SWFX market participants were cut their bullish positions, while the price has been decreasing; the sell side contracted by 3% and reached 25%. Pending orders market is oriented to see continuation of an upside move, since 63% are buy orders.