FX_Trader_Analyst
Short

Aussie move driven by short covering

FX:AUDUSD   Australian Dollar/U.S. Dollar
Hi everyone!

I would really appreciate any comments or thoughts on this analysis, what are you missing here, if there is anything unclear. Your time is greatly appreciated! Thank you.

Last week I published
AUDUSD might be attractive for bears
and Aussie did actually exactly what was anticipated. Price went up confirming support zone and pivot points at .695. Price is now siting in from of resistance zone and 618 Fib retracement which is usually sell zone for bears.

Considering that according to COT report from last week the number of short was reduced while number of longer hasn't gone up much someone can interpret this price increase can be just a short covering and is not driven by bulls.

As a result I see price of Aussie to retrace towards .702 levels this week. Significant volatility might be triggered around Interest rate decision on Wednesday.
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