- Michael Hewson, CMC Markets (based on WBP Online)
An higher-than-anticipated US GDP figure on Friday caused the AUD/USD currency pair to sustain rather serious losses. As a result, the up-trend was fully broken, with the second support cluster managing to keep the pair from falling deeper down. Today the nearest support is represented only by the 55-day SMA, a breach of which is likely to push the Aussie even towards the second target, namely the weekly S1 and the monthly PP around 0.7070. Nevertheless, the risk-off sentiment is currently bolstering the AUD, but the weekly PP, the 20 and the 100-day SMAs providing resistance circa 0.7150. Technical studies are also giving bullish signals, implying the 0.72 level could be retested.
Exactly three quarters (75%) of traders are now long the Aussie, whereas the portion of purchase orders dropped from 58 to 46%.