© Dukascopy Bank SA
- Morgan Stanley (based on Bloomberg)
Pair's Outlook
The Aussie remains bullish as it has appreciated for five consecutive days after falling almost 100 pips lower on last Monday. The next resistance level for the Australian currency is the weekly R1 at 0.9386, though in our opinion this level should not be hard to break. Now, the next resistance level (major level, May high, monthly R1) at 0.9400/10 should stop pair's appreciation and send it reasonably lower closer to the 0.93 level. The daily and monthly technicals are bearish, it strengthens our bearish longer term view.
Traders' Sentiment
The difference between the amounts of long (48%) and short (52%) positions remains negligible, meaning the sentiment is still neutral. In the meantime, the share of buy orders grew from 32% up to 47%.
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