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– Commonwealth Bank of Australia (based on Bloomberg)
Pair's Outlook
The Aussie's rally continued on Tuesday, as it added another 22 pips against the US counterpart. Furthermore, the RBA governor's speech earlier today provided the Antipodean currency with more strength, causing the pair to surge beyond 0.77. The 0.77 mark is reinforced by a number of resistances, such as the Bollinger band, the five-year down-trend, the weekly and the monthly R1s, which altogether should limit the gains. However, the Australian Dollar has the potential to even reach the second resistance at 0.7766, represented by the weekly R2, as technical indicators retain bullish signals. Nevertheless, our base case scenario is a close around 0.7705, leaving the down-trend intact.
Traders' Sentiment
There are 70% of traders being bearish towards the Aussie today, whereas 74% of all pending orders are to purchase it.
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