The AUD/USD pair pulls back slightly from a fresh one-month high touched earlier this Monday, failing to decisively break out through the 100-day Simple Moving Average (SMA) pivotal resistance.
The Australian dollar reclaimed 70c last week, despite asset managers and large speculators increasing their record gross-short exposure. And with AUD/USD bouncing from a potential head-and-shoulders neckline, it raises the question of whether bearish sentiment has reached an extreme.
AUD/USD's strong rebound last week indicates short term bottoming at 0.6893. With late breach of 0.7035 temporary top, initial bias is back on the upside.