Australian Dollar, AUD/USD, Technical Analysis, Retail Trader Positioning – IGCS Update
- Australian Dollar cautiously climbing in latest days
- Retail merchants have been slowly boosting bearish bets
- Is this an indication that AUD/USD could proceed increased subsequent?
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The Australian Dollar has been pushing cautiously increased in latest days. In response, retail merchants have been slowly rising draw back publicity in AUD/USD. This could be seen by looking at IG Client Sentiment (IGCS), which regularly features as a contrarian indicator. With that in thoughts, might additional positive factors be in retailer for the trade charge?
AUD/USD Sentiment Outlook – Bullish
The IGCS gauge reveals that about 74% of retail merchants are net-long AUD/USD. Since most of them are nonetheless biased to the upside, this hints that costs could proceed falling down the street. That mentioned, draw back publicity has elevated by 21.6% and 13.5% in comparison with yesterday and final week, respectively. With that in thoughts, latest adjustments in positioning trace that the value pattern could quickly reverse increased.
Australian Dollar Daily Chart
Looking on the each day chart beneath, the Australian Dollar has closed above the 20-day Moving Average. This adopted the emergence of optimistic RSI divergence, an indication of fading draw back momentum. The latter can at occasions precede a flip increased. Now, the main target is on the 0.6459 inflection level as rapid resistance, adopted by the 50-day Moving Average.
The latter could maintain as resistance, sustaining the broader draw back technical bias. Otherwise, additional positive factors would subsequently place the deal with the 0.6568 inflection level. In the occasion of a flip decrease, clearing help at 0.6382 (78.6% degree) exposes the November low of 0.6272 earlier than the October 2022 backside of 0.6170 kicks in.
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Chart Created in Trading View
— Written by Daniel Dubrovsky, Senior Strategist for DailyFX.com
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