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AUD/USD to retreat after yesterday's setback

© Dukascopy Bank SA
"The decline from the May high suggests an increased risk that the medium term downtrend is back on track. While the short term setup can allow for a corrective pause given the proximity to the next line of key support levels and the current oversold framework, new lows are still expected." 
- JP Morgan (based on FXStreet)


Pair's Outlook 
On Monday, the 20-day SMA, along with the weekly PP, prevented the AUD/USD currency pair from edging lower and pushed the Australian Dollar back up. As a result, the Aussie gained 29 pips, as the 100-day SMA limited all attempts to rise higher. Nevertheless, a formidable resistance cluster near 0.78 is on the way, which will be difficult to breach, thus, we still expect the given pair to suffer losses today. Immediate support still rests around 0.7705, represented by the weekly PP and 20-day SMA, while technical indicators keep showing bearish signs, although not as strong as before. 

Traders' Sentiment 
Bulls managed to increase their numbers, as 73% of all positions are now long. The share of buy orders also edged up, from 28 to 32%.
© Dukascopy Bank SA


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