- Michael Sneyd, BNP Paribas (based on Reuters)
On Tuesday, the Australian Dollar erased Monday's gains and moved slightly more to the downside. However, the currency pair did not drop as much as expected, settling around 0.7616. The Aussie is likely to preserve the bearish momentum, unless the FOMC gives a reason to abandon US Dollar longs. The technical indicators are pointing south-ish, suggesting the downslide. Immidiate support lies around 0.7555, represented by the Bollinger band and weekly S1.
The share of bullish market participants added one percentage point, and now 63% of all positions are long. The number of orders to acquire the Aussie, on the other hand, fell, as 72% of traders plan to sell the Australian currency.