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AUD/USD Weekly Price Chart
Notes: In my newest Aussie Price Outlook we famous that, “a breach / shut above 6972 is required to gas the subsequent leg increased focusing on the yearly low-day shut at 7005– search for an even bigger response there IF reached” A quick stint into the 50% retracement of the yearly vary failed post-NFPs on Friday with value closing the week under the determine.
Key weekly resistance stays at 7020/42 with a breach above the June 2018 resistance slope (presently ~7080s) wanted to validate a bigger flip in value. Support rests on the 61.8% retracement of the May advance (additionally the May 20th reversal-week shut) at 6925. A draw back break of this formation (presently round ~6900) would as soon as once more hold the 2016 low / low-week shut into focus at 6827/55– search for a extra important response there IF reached.
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Bottom line: Aussie turned from a serious resistance confluence final week and IF costs are certainly heading increased, losses needs to be restricted to the decrease parallel. From a buying and selling standpoint, search for a help on a transfer decrease to supply extra favorable entries with a topside breach above channel resistance wanted to shift the broader focus increased. Review my newest AUD/USD Price Outlook for a better take a look at the near-term Aussie buying and selling ranges.
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AUD/USD Trader Sentiment
- A abstract of IG Client Sentiment reveals merchants are net-long AUD/USD – the ratio stands at +1.84 (64.8% of merchants are lengthy) – bearish studying
- Traders have remained net-long since April 18th; value has moved 2.9% decrease since then
- Long positions are 3.9% increased than yesterday and eight.0% increased from final week
- Short positions are 1.7% increased than yesterday and 14.7% decrease from final week
- We sometimes take a contrarian view to crowd sentiment, and the actual fact merchants are net-long suggests Aussie could proceed to fall. Traders are additional net-long than yesterday & final week, and the mixture of present positioning and up to date adjustments provides us a stronger AUD/USD-bearish contrarian buying and selling bias from a sentiment standpoint.
See how shifts in AUD/USD retail positioning are impacting trend- Learn extra about sentiment!
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Previous Weekly Technical Charts
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— Written by Michael Boutros, Technical Currency Strategist with DailyFX
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