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- BNP Paribas (based on Reuters)
Pair's Outlook
The Aussie managed to outperform the US counterpart again on Wednesday, thus, preserving the channel pattern. Furthermore, the AUD/USD currency pair reached a 15-week high yesterday, as it reached the 0.7720 level. The Aussie, however, is likely to struggle to advance further, as the upper Bollinger band, the weekly R2 and the monthly R1 form a strong supply area just 15 pips away. The weekly R1 is now the nearest support, but will doubtfully limit possible losses. More focus should be on the channel's support line instead, which rests at 0.7664. Meanwhile, technical studies suggest the commodity currency is to end the day in the green zone.
Traders' Sentiment
Today three quarters (66%) of traders are short the Aussie (previously 64%). The share of purchase orders, however, surged from 43 to 50%.
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