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    AUD/USD corrects after Friday's plunge

    © Dukascopy Bank SA
    "The US dollar index post its strongest week since early November, after some fairly strong economic reports last week, which appear to have assuaged some of the more pessimistic outlooks on the US economy, and also brought back into play the prospect of further tightening later this year."
    - Michael Hewson, CMC Markets (based on WBP Online) 


    Pair's Outlook 
    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. 

    Traders' Sentiment 
    Exactly three quarters (75%) of traders are now long the Aussie, whereas the portion of purchase orders dropped from 58 to 46%.
    © Dukascopy Bank SA

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