© Dukascopy Bank SA
- IG Securities (based on Reuters)
Pair's Outlook
On Tuesday the Australian Dollar appreciated against the American Dollar for the fourth consecutive day, with the rally triggered by rising commodity prices. As a result, the Aussie stabilised above the 0.78 psychological level, but now appears to be having difficulties prolonging its bullish momentum. The main reason for that is a decline in oil prices today, which can lead the exchange rate back below 0.7795, namely the weekly R1. However, technical indicators are now giving bullish signals in the daily timeframe, suggesting that the positive outcome is possible, once the upper Bollinger band just above today's opening price is overcome.
Traders' Sentiment
Bullish market sentiment keeps worsening, as only 55% of traders hold long positions today, compared to 59% on Tuesday.
© Dukascopy Bank SA