AUD/USD risks breaking channel pattern

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The fact that the investment community is still betting on an ongoing [US] dollar appreciation further reinforces the case for a downside surprise." 
- AMP Capital Investors Ltd. (based on Bloomberg) 

Pair's Outlook 
The Australian Dollar failed to appreciate against the American counterpart on Thursday, having experienced a 17-pip loss. A slide back under 0.77 suggests the AUD/USD pair is not ready to maintain trade above this area, thus, risks of the ascending channel pattern's support line getting breached are now higher. Technical indicators, on the other hand, are in favour of the positive outcome today, but the immediate resistance area is believed to remain intact. As a result, if the channel's lower boundary fails to hold, the 0.7620 mark is expected to succeed, as not only is it bolstered by the weekly S1 and the 20-day SMA, but also kept the Aussie afloat since the beginning of the month. 

Traders' Sentiment 
Bearish traders' sentiment remains unchanged at 66%, while the portion of sell orders inched up again, namely from 50 to 57%.
© Dukascopy Bank SA

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