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DOW JONES, AUD/USD Forecast: Retail Investors Buying the Dip

DOW JONES SENTIMENT OUTLOOK - BEARISH
The IGCS gauge implies that roughly 49% of retail investors are net long the Dow Jones Industrial Average. Upside exposure has increased by 45.09% and 42.39% over a daily and weekly basis respectively. Recent changes in sentiment warn that the current price trend may soon reverse lower despite the fact traders remain netshort.

DOW JONES FUTURES TECHNICAL ANALYSIS
Dow Jones futures are pressuring key rising support from May, though a downside breakout is unconfirmed. This follows a top just under highs from earlier this year, establishing key resistance between 29263 – 29523. Further losses, especially beyond the 50-day SMA, opens the door to a reversal towards the 26193 – 26494 inflection zone.


AUD/USD SENTIMENT OUTLOOK - BEARISH
The IGCS gauge implies that about 47% of retail traders are net long the sentiment-linked AUD/USD. Net long bets have decreased by 2.23% over a daily basis while rising 10.64% over a weekly period. Recent changes in sentiment warn that the current price trend may soon reverse lower despite the fact traders remain netshort.

AUD/USD TECHNICAL ANALYSIS
AUD/USD recently extended losses after appearing to top around highs from December 2018. Prices have since inched closer to retesting the former falling trend line from 2013. Just below that sits the 50-day SMA. A combination of these could make for a key support zone, which if taken out, could risk a downside reversal.


Reference by: Daniel Dubrovsky, Currency Analyst for DailyFX.com
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