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– Peter Chia, United Overseas Bank Ltd. (based on Bloomberg)
Pair's Outlook
The Aussie barely appreciated against its US counterpart on Wednesday, adding only nine pips, therefore, leaving the 0.77 level unconquered. According to technical studies, the Australian currency is likely to post more gains today, but with the weekly R1 and the Bollinger band still providing immediate resistance around the 0.77 major level. Moreover, the AUD/USD currency pair was unable to maintain trade above the 0.7710 level for six months now, thus, a breach today is doubtful. On the other hand, further political uncertainty concerning the US elections could provide sufficient impetus for an eventual breakthrough.
Traders' Sentiment
For the third day in a row bears take up 65% of the market. However, the share of purchase orders declined from 56 to 47% over the day.
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