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"The Australian dollar is now likely to trade weakly into next week's RBA decision."
- Royal Bank of Scotland (based on Bloomberg)
Pair's Outlook
The Australian Dollar suffered a 162-pip drop against its US counterpart, closing between the second and the third support areas. Today there is still room for a decline towards the up-trend at 0.7523, which is bolstered by the weekly S2, the monthly PP and the 55-day SMA, but according to technical indicators the bullish momentum is to prevail. The weekly S1 and the 20-day SMA form a resistance cluster circa 0.7635, with the second target being the weekly pivot point at 0.7724. Furthermore, the AUD/USD currency pair opened with a small bullish gap, refusing to maintain trade under the 0.76 mark.
Traders' Sentiment
Even more SWFX market participants (58%) are betting the Aussie is going to depreciate, up from 55% yesterday. However, pending orders remain on the green side today.
© Dukascopy Bank SA