The AUD/USD currency pair’s recovery from the pandemic March lows has been impressive, to say the least. The decline of late which saw prices tap out at the December 2018 highs in August this year has been shallow in comparison. This week the bulls have forced prices to break out of the falling wedge pattern and knife through the 200 period weekly moving average after another round of heavy selling pressure on the dollar.
Overhead resistance zone at (1) will be key to gauge to upside momentum of this pair, with zones 2 and 3 providing good selling opportunities for the short to midterm. Public sentiment for this pair is neutral on the lower time frames with a slight bearish slant on the higher time frames. Leveraged funds are 74.77% long vs 25.23% short on the AUD, and asset managers are 50/50 along with other reportables.
On the U.S. Dollar front, leveraged funds are 57.01% long vs 42.99% short, with asset managers slightly more bearish at 57.52%. Other reportables (small pooled funds etc) are betting on a further decline on the dollar, currently holding shorts at 64.28%.
Overhead resistance zone at (1) will be key to gauge to upside momentum of this pair, with zones 2 and 3 providing good selling opportunities for the short to midterm. Public sentiment for this pair is neutral on the lower time frames with a slight bearish slant on the higher time frames. Leveraged funds are 74.77% long vs 25.23% short on the AUD, and asset managers are 50/50 along with other reportables.
On the U.S. Dollar front, leveraged funds are 57.01% long vs 42.99% short, with asset managers slightly more bearish at 57.52%. Other reportables (small pooled funds etc) are betting on a further decline on the dollar, currently holding shorts at 64.28%.