AUD/USD extended gains

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"In Australia people knew the mining numbers would be weak but were expecting construction investment to make up for that. When it didn't we saw the reaction on the (Aussie) dollar." 
- Credit Agricole (based on CNBC) 

Pair's Outlook 
For a second day now the Aussie exceeded expectations. Not only did the Australian Dollar reach the anticipated targets, but also went beyond the initial resistance levels. However, overall the pair is moving in a downtrend channel, hence, the growth is expected only as long as the price is below the trendline at 0.7916. Afterwards, AUD/USD is likely to bounce back. Technical studies suggest the rate will move sideways, but given that it established new support levels, the pair is likely to edge up, whereas in the longer-term perspective we expect continuation of a bearish tendency. 

Traders' Sentiment 
Long/short ratio remains unchanged at 61% bulls and 49% bears, while the portion of orders to acquire the Aussie edged up to 45%.
© Dukascopy Bank SA

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