- Morgan Stanley (based on CNBC)
Indeed, the 55-day SMA was too strong of a barrier to penetrate, resulting in the AUD/USD rebound. The pair managed to reach the monthly PP at 0.7834, but was pushed back to 0.7809, where it closed trade. Nonetheless, yesterday is considered to be a small setback and the bearish trend is likely to continue today. The Aussie has already bounced back from the monthly PP and even breached the two closest support levels. If the US fundamentals do not disappoint, we might even see a fall down to the lower Bollinger band at 0.7749 or even the weekly S1 at 0.7731.
Bulls keep prevailing over bears, although 72% of traders are long the Aussie, while the portion of buy orders soared from 19 to 55%.