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    AUD/USD: risks skewed to the downside

    © Dukascopy Bank SA
    "The failure to deliver a rate cut this week could also see the Aussie strengthen, but under that scenario the upside looks more limited. Many players will feel more confident of a May cut, especially if the accompanying statement is at all encouraging." 
    - BBH (based on FXStreet)


    Pair's Outlook 
    Last Friday the currency pair edged up and completely negated the losses, which occurred during the two previous days. The Aussie tested the monthly pivot point around 0.7704, but ultimately settled at 0.7628. The overall bias remains negative, and the technical studies are showing bearish signs. As a result, the Australian Dollar is likely to edge down, unless the US fundamentals surprise to the downside. The nearest support rests at 0.7636, while a stronger level lies around 0.7536, but is unlikely to be reached. 

    Traders' Sentiment 
    A hike of three percentage points led the share of bulls to 69% of the market. The portion of purchase orders in the 100-pip range from the spot price increased from 28 to 37%.
    © Dukascopy Bank SA

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