Although we think it is still premature to talk about it, a fall of Aud below the support of area 0.87 as the one that is realizing at the moment should be carefully watched with great interest by investors desperate for returns. Obviously we are talking about tactics and not about strategic positioning, but maybe a fall in area 0.83 / 0.84, the transit area of the trend line joining the two recent primary lows, would be a great opportunity.
The sentiment on commodities is very depressed, that is not a bad point in a contrarian view.
Concerning the futures market, the net short achieved by hedge funds has begun to be satisfying (almost 30% of the open interest) and this, in the past, has always favoured the formation of a primary low. The Aussie should be followed, and bought at a certain tactical level (Chart Source: Bloomberg).
The sentiment on commodities is very depressed, that is not a bad point in a contrarian view.
Concerning the futures market, the net short achieved by hedge funds has begun to be satisfying (almost 30% of the open interest) and this, in the past, has always favoured the formation of a primary low. The Aussie should be followed, and bought at a certain tactical level (Chart Source: Bloomberg).
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.