AUD/USD capped by 1.0393/79

A combination of the monthly pivot point and the 55-day SMA managed to deny yesterday's attempt of bears to penetrate the support at 1.0355/40. However, the sell-off re-emerged just when the price approached a cluster of resistances at 1.0393/79, which is in fact formed by the 100 and 200-day SMAs, apart from the weekly S1. Accordingly, the risk of 1.0355/40 being breached is increased and this may mean a sharp drop down to 1.0185.

Even though the popularity of the Australian Dollar has recently increased (the currency on average is acquired in 42% of cases) a substantial majority (71%) of traders do not see AUD/USD as capable of recovering from the current levels, since they are short on the pair. The ratio between the buy and sell orders is 62% to 38% respectively.