"The FOMC minutes yesterday made it clear that shrinking the +$4.5T balance sheet will be a priority for U.S. policy makers in the coming years, but probably would start very "gradually" and not until late this year at the soonest. "
— Dean Popplewell, Market Pulse
Pair's Outlook
The lack of strong market movers has stranded AUD/USD between the weekly S1 at 0.7585 and the 200-day SMA at 0.7554. The latter is reinforced by the weekly S2 at 0.7540. It is expected that the downside volatility might move the Aussie towards this support cluster, but not exceed the weekly S2. A less likely scenario might move the pair towards the closest resistance formed by the weekly S1 at 0.7585. This move, however, might realise in the following trading days if no fundamental data change the current market sentiment.
Traders' Sentiment
Today, 64% of all positions are short (previously 65%). Meanwhile, 67% of set up orders are to buy the Aussie.
© Dukascopy Bank SA