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    AUD/USD stuck around the weekly and monthly PPs

    © Dukascopy Bank SA
    "The US dollar has been rallying as a haven asset, despite a cautious Federal Reserve that seems unlikely to raise rates before September. If markets return to risk-on, the Fed's caution could come back into focus and the dollar could lose its bid." 
    - CMC Markets (based on WBP Online) 


    Pair's Outlook 
    Risk aversion and falling oil prices sparked weakness in the AUD/USD currency pair yesterday, causing the volatility to fall even below the 0.73 level. However, price stabilised at 0.7365, as it tends to gravitate towards the monthly PP this week. Furthermore, for two weeks straight the Aussie was unable to settle below the 0.7360 level, thus, we could expect a correction today. Technical indicators in the daily timeframe suggest the same. The 100-day SMA at 0.7404 is expected to limit the gains, which is the highest level of the immediate resistance cluster, formed also by the monthly and the weekly PPs. 

    Traders' Sentiment 
    Although not as strong as yesterday, market sentiment remains bullish at 73% (previously 75%). Meanwhile, the portion of sell orders added 11% points over the day, having risen up to 70%.
    © Dukascopy Bank SA

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