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– FPG Securities (based on Reuters)
Pair's Outlook
The four-year down-trend was preserved on Thursday, as the AUD/USD currency pair erased all intraday gains and ended the day with a slight decline. Consequently, the immediate resistance, represented by the down-trend, the monthly R1 and the Bollinger band, should be sufficient again and trigger another Aussie sell-off. In this case the pair could drop as low as 0.7630, although a close higher is more probable. On the other hand, the technical indicators retain their bullish signals, implying that the Antipodean currency could post more gains and breach the down-trend. In case of a positive outcome, the ceiling is likely to be the 0.7740 level, namely the Bollinger band.
Traders' Sentiment
Bearish traders' sentiment returned to its Wednesday's level of 70%, whereas the portion of buy orders inched up from 69 to 70%.
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