AUD/USD risks plunging under 0.77

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"It's a case of two steps forwards, one back for the U.S. data, but as long as there are more forward steps than backward ones, and as long as the market prices in a mere 1% in Fed hikes over 18 months, I'll look for stronger data to eventually trigger a rate re-pricing and a stronger dollar too, across the board." 
- Societe Generale (based on MarketWatch) 

Pair's Outlook 
Although after some struggle the Australian Dollar managed to overcome the 100-day SMA, the resistance cluster around 0.78 pushed the Aussie back down. As a result, the AUD/USD currency pair even pierced through the weekly PP, before stabilising at 0.7729. Technical indicators are now showing bearish signs, suggesting the pair is to sustain losses for a second day this week. The nearest support rests at 0.7717, namely the 20-day SMA, but a slump under the 0.77 psychological level is more likely.  

Traders' Sentiment 
Bullish SWFX traders' sentiment returned to its Friday's level of 73%. At the same time, the number of orders to acquire the Aussie lost 20 percentage points. The commands now take up 34% of the market.
© Dukascopy Bank SA

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